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Unformatted text preview: Required: Compute YAZs inventoried costs and cost of goods sold for the year. YAZs 263A costs for the year Indirect costs (less advertising $30,000) 202,000 Allocation rate (burden rate based on direct hours) Assembly line hours 30,000 Total hours 40,000 x 75% Sec 263A costs 151,500 Indirect costs allocated to ending inventory Total indirect costs beginning inventory +current period 5,000 151,500 156,500 Allocation percentage (ratio of direct costs) Direct costs in ending inventory 40,800 340,000 Direct costs in beginning inventory + direct costs in current period (30,000 + 310,000) x 12% Ending inventory of indirect costs 18,780 Cost of good sold for YAZ is computed: Beginning inventory (30,000 direct + 5,000 indirect) 35,000 Direct costs 310,000 Section 263A costs 151,500 Cost of good available 496,500 Ending inventory (40,800 direct + 18,780 indirect) (59,580) Cost of good sold 436,920...
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This note was uploaded on 09/09/2011 for the course TAX 6845 taught by Professor Kelliher,c during the Fall '08 term at University of Central Florida.
- Fall '08