Reference no: EM131055084

6-34

Luke's Lubricants starts business on January 1. The following operations and data are available for January for the one lubricants it produces:

Beginning  Inventory	Gallons
Beginning Inventory	0
Started in January	900,000
Ending work-in-process inventory(80% complete)	100,000

Cost s incurred in January follow:

Materials                                                 $564,000

Labor                                                      145,200

Manufacturing Overhead                             294,000

All production at Lukes is sold as it is produces(there are no finished goods inventories).

Requires

a.      Compute cost of goods sold for January

b.      What is the value of work-in-process inventory on January 31

6-39

Tiger furnishing produces two models of cabinets for home theater components, the Basic and the Dominators. Data on operations and cost for March follow:

	Basic	Dominator	Total
Units Produce	1,000	250	1,250
Machines on hours	4,500	2,500	7,000
Direct labor hours	3,000	2,000	5,000
Direct material cost	$10,000	$3,750	$13,750
Direct labor cost	64,500	35,500	100,000
Manufacturing overhead cost			175,000
Total cost			$288,750

Required

Compute the predetermine overhead rate assuming that Tiger Furnishing use direct labor-hours to allocate overhead cost

6-40

Refer to the data in Exercise 6-39. Compute the predetermine overhead rate assuming that Tiger Furnishing use direct labor cost to allocate overhead cost

6-41

Refer to the data in Exercise 6-39. Compute the predetermine overhead rat assuming that Tiger Furnishing uses machine-hours to allocate overhead cost

6-46

Refer to the data in Exercise 6-39. Compute the individual product cost per unit assuming that Tiger Furnishing uses direct labor cost to allocate overhead to the products