The following information is for X Company for 2009:
Direct materials purchased $ 37,150
Direct materials used 35,104
Direct labor 15,202
Work in Process, January 1, 2009 6,234
Finished Goods, January 1, 2009 3,438
Work in Process, December 31, 2009 3,538
Finished goods, December 31 2009 6,158
What was Cost of Goods Sold in 2009?
solution: CGS=(DMused +DL+OH)-cost incurred
***DONT KNOW HOW TO CALC (or what counts as) cost incurred!!
02-17-2010 10:40 PM
yeah the problem is We don't know what is "cost incurred"
02-17-2010 10:54 PM
Alright, I don't know how to do #1 either. No idea, so if someone could please help. But I can
help on others.
Here's #2: X Company has the following estimated costs for the year:
Direct materials $63,500
Direct labor 22,400
Factory supplies 20,900
Factory supervision 29,900
Factory rent 42,100
Sales salaries 50,000
Factory insurance 66,900
X Company estimates that 1,600 direct labor hours will be worked during the year, and machines
will be operated for 59,000 hours during the year. If overhead is allocated on the basis of direct
labor hours, what will the overhead rate be?