Answer:
1.Cost of direct material used =$168000
2.cost of direct labor used =$100000
3.Cost of goods manufactured =$396800
4.cost of goods sold =$422100
5.Gross profit = $577900
6.Under applied factory overhead =$84000
Explanation:
Direct labour= (D/L)
Direct material = (D/M)
Factory overhead =( FOH)
Raw material used = material (open) +purchased -material (end)
= 30000+194000-56000
= 168000.
Entry: Dr work in process 168000
Cr raw material 168000
Manufacturing cost = Raw material used + direct labor cost + factory overhead.
= 168000+100000+(16000+23000+100000) = $407000.
COGM= Manufacturing cost+work in process (open)-work in process (end)
= 407000+9900 - 20100 = $396800.
Applied factory overhead= direct labor * predetermined rate
= 100000*55% = $55000.
entry: Dr work in process 55000
Cr Applied factory overhead 55000.
Cost of goods sold = Cost of goods manufactured + finished goods (open) -finished goods (end).
= 396800+59000-33700 =$422100.
T-account
Raw material Work in process
Dr___________Cr__ __ DR ___________CR
30000-- (open) 9900 ----
194000--- (D/L) 100000 ---
---- 56000 (FOH) 55000 --- 20100
---- bal figure 168000 168000 -- bal fig 312800.
Actual factory overhead = $139000
Applied factory overhead =$<u>55000</u>
Under applied factory overhead = 84000.
Sales = 1000000
Less cost of goods sold = (<u>422100</u>)
Gross profit 577900