It usually takes less time to buy a six-pack of Pepsi, a loaf of bread, and a bag of potato chips at a small convenience store (
1 answer:
You might be interested in
Answer:
$46,000
Explanation:
Note: The balance sheet is shown in the attachment. Kindly find it below:
The computation of the cost of goods sold expense is shown below:
Cost of goods sold = Opening inventory + Purchase - ending inventory
where,
Opening inventory = $22,000
Purchase = $42,000
And, the ending inventory is $18,000
So, the cost of goods sold is
= $22,000 + $42,000 - $18,000
= $46,000
Basically we applied the above formula to find out the cost of goods sold expense in 2014
Answer and Explanation:
1.
The direct labor overhead rate using the direct labor hours is shown below:-
Direct labor overhead rate = Total overheads ÷ Direct labor hours
= $220,800 ÷ 1,725
= $128
b. The machine hour overhead rate using the machine hours is
= Total overhead ÷ Machine hours
= $220,800 ÷ 4,600
= $48
2.
The factory overhead costs using direct labor hour is
Particulars Automobile Valve Wheels Total
bumpers covers
Direct labor
hours 730 480 515
Overhead rate $128 $128 $128
Total $ 93,440 $61,440 $65,920 $220,800
For determining the total overhead we simply multiply the direct labor hours with overhead rate.
The factory overhead costs using machine hour is
Particulars Automobile Valve Wheels Total
bumpers covers
Machine hours 1,970 1,270 1,360
Overhead rate $48 $48 $48
Total overhead $94,560 $60,960 $65,280 $220,800
For determining the total overhead we simply multiply the machine hours with overhead rate.
