Reference no: EM132967050
Question - BeatKoin Company manufactures luxurious toys. BeatKoin uses direct labor hours to allocate manufacturing overhead costs. At the end of December 2020, BeatKoin estimated that the manufacturing overhead costs would total $100,000 and the direct labor hours would total 35,000 in 2021.
BeatKoin had beginning and ending balances of inventories for April 2021 as follows:
Apr. 1, 2021 Apr. 30, 2021
Raw materials $27,000 ?
Work-in-process inventory $2,400 $1,500
Finished goods inventory $0 ?
Following is a list of costs the company incurred during April 2021.
-Purchased raw materials for $34,000
-Used in production: direct materials, $45,000; indirect materials, $1,200
-Incurred 4,000 manufacturing hours; 90% of which was direct labor at $18 hourly rate and 10% of which was indirect labor at $11 hourly rate
-Depreciation on plant at $1,500
-Plant insurance at $800
-Plant property tax at $2,000BeatKoin produced 800 units and sold 700 units during April 2021. The sales price was $200 per unit.
Required -
1. Find the predetermined overhead allocation rate for 2021. Round to the nearest cents.
2. Find the cost of goods manufactured during April 2021. Round to the nearest cents.
3. Find the cost of goods sold before overallocated or underallocated manufacturing overhead adjustment during April 2021. Round to the nearest cents.
4. Find the gross profit for April 2021. Round to the nearest cents.