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blankship blankship
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A week ago
Athletic Gen Inc. has determined the following unit costs and selling price for each of its products:

ShortsShirtsSweat Suits
Direct materials$4.45$6.85$44.70
Direct labor2.502.0015.00
Manufacturing overhead  3.00   2.40  18.00
Total unit cost$9.95$11.25$77.70
Sales price per unit$12.00$14.80$125.00

On May 31, Athletic Gen Inc.'s Work in Process Inventory consisted of the following items:

JobUnitsAccumulated Cost
Shorts100$  715
Shirts2001,800
Sweat Suits  50  3,045
$5,560

During June, a total of $190,590 in direct materials and $76,200 in direct labor costs were incurred. Units finished and sold during June were as follows:

ProductUnits FinishedUnits Sold
Shorts13,50014,000
Shirts 3,2003,100
Sweat Suits 2,5002,500


Required
a.Given that Athletic Gen Inc. uses direct labor dollars as its application base, what is
the company's predetermined overhead rate?
b.Calculate the total manufacturing cost for June.
c.Calculate the cost of goods manufactured for June.
d.Calculate the ending Work in Process Inventory balance on June 30.
e.Calculate Cost of Goods Sold for June.
Textbook 

Managerial Accounting


Edition: 4th
Author:
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rpascuarpascua
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A week ago
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More solutions for this book are available here
a.
Using cost of shorts:
$2.50 × POR=$3.00
POR = 120% per direct labor cost
b.
Direct materials$190,590
Direct labor76,200
Manufacturing overhead91,440($76,200 × 120%)
  Total manufacturing cost$358,230


c.
13,500 shorts × $9.95$134,325
3,200 shirts × $11.2536,000
2,500 sweat suits × $77.70194,250
Cost of goods manufactured$364,575


d.



e.
14,000 shorts × $9.95$139,300
3,100 shirts × $11.2534,875
2,500 sweat suits × $77.70194,250
Cost of Goods Sold$368,425


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blankship Author
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Thanks
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Thanks
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Thanks for your help!!
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