assignment7.doc - P2-6 Decision Making--Inventory and Cost...

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Unformatted text preview: P2-6 Decision Making--Inventory and Cost of Goods Sold B. Inventory Work-in-Process Finished Services Beginning Balance $20,000 2,000 30,000 4,000 15,000 5,000 76,000 (61,000) $15,000 Ending Balance $5,000 Cost of Services Ending Balance 61,000 (59,000) $7,000 Ending Balance $59,000 59,000 $59,000 Cost of Services Provided = C. Sales Revenue Cost of Services Gross Margin $95,000 $59,000 $36,000 Cost of Services Sold Percentage = Gross Margin Percentage = 62.11% 37.89% P5-7 Multiple Cost Drivers: Calculating Predetermined Overhead Rates A. Activity Pool Machine setups Inspection Receiving Machine operations Estimated Overhead Costs $560,000 $245,000 $21,300 $590,000 Estimated Activity Levels 2,500 10,000 1,200 73,750 Predertimed Overhead Rate $224 $25 $18 $8 Total Overhead Costs Product A = Units Produced = Overhead Costs per Unit = B. Activity Levels Product A 3 9 3 150 Overhead Cost per Activity Pool $672 $221 $53 $1,200 $2,146 150 $14 ...
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assignment7.doc - P2-6 Decision Making--Inventory and Cost...

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