Reference no: EM132561726

The records of Reinbeck inc show the following information as of March 31 19B

Materials used $440000

Direct labor 290000

Indirect labor 46000

Light and power 4260

Depreciation 4700

Repairs to machinery 5800

Miscellaneous factory overhead 29000

Work in process inventory, April 1,19A 41200

Finished goods inventory, April 1, 19A 34300

Work in process inventory, March 31, 19 B 42500

Finished goods inventory, March 31, 19 B 31500

During the year 18000 units were completed.

Required:

Question 1) Explain the concept of over or under-applied factory overhead by comparing actual factory overhead with applied factory overhead if the company applies factory overhead on the basis of 30% of direct labor cost? And then also determine the amount of over or under applied factory overhead?

Question 2) A cost of goods sold statement for the year ended March 31, 19B

Discuss how the cost of each unit manufactured is determined and then also calculate its value?