Reference no: EM133068837

Question - Rex Incorporated uses a job-costing system under which overhead is allocated based on direct labor dollars. The company closes all over-/under-applied overhead to the cost of goods sold (COGS). The company worked on three jobs during the first quarter of 2019 (i.e., 1/1/2019 to 3/31/2019). The following information relates to Rex's first quarter of 2019:

Budgeted Manufacturing Overhead $9,000,000

Actual Manufacturing Overhead $8,500,000

Budgeted direct labor hours 40,000 hours

Direct labor rate actual $45

Direct labor rate budgeted $45

Revenue $20,000,000

There was no direct material or finished-goods inventory at the beginning of 2019. Actual data for Jobs 1, 2 and 3, along with their completion and sale status, are as follows:

Beg Inventory ($) 1/1/2019	Direct Material ($)	Direct Labor Hours	Status as of 3/31/ 2019
Job1	445,445.00	2,333,250.00	24,300 hours
Job2	221,800.00	1,605,990.00	14,100 hours
Job3	0	501,225.00	3,700 hours

These are the only jobs Rex worked on during the first quarter of 2019.

1. What is the POHR for Rex in the first quarter of 2019?

2. What is the dollar value of work-in-process inventory at the end of the first quarter of 2019?

3. What is the dollar value of Rex's cost of goods manufactured (COGM) during the first quarter of 2018 (before any adjustment for over-or under-applied overhead)?

4. What is the dollar value of reported gross margin (after any adjustment for over-/underapplied overhead to COGS)?