Cutting Edge Floor products installs floor coverings in business complexes. Cutting Edge uses normal costing. Overhead is charged to jobs on the basis on direct labor cost. The estimated overhead for 2015 in $131,250 and the estimated direct labor cost is $75,000. Inventory balances on January 1, 2015 were:
Material Inventory-$3,350
Work in Progress-$8,500*
Finished Goods Inventory-$0
*Work in Progress of $5,000 on Job 70 and $3,500 on Job 72
|
Job 70
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Job 72
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Job 73
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Job 74
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Job 75
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Job 76
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|
DM
|
$8000
|
$12,235
|
$13,550
|
$15,000
|
$300
|
$5600
|
|
DL
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$10,000
|
$14,000
|
$22,000
|
$18,000
|
$600
|
$8600
|
Other information:
1. Material purchased during the year totaled $95,000
2. Jobs 70 and 72 were sold in 2015. Job 70 sold for $121,000 and Job 72 sold for $163,000
3. Jobs 73 and 74 were finished in 2015 but were not sold
4. Jobs 75 and 76 were incomplete at 12/31/15
5. Actual overhead incurred in 2015 was $125,000
Questions:
1. Compure the ending balance in Work in Progress in 2015.
2. Compute the balance in Finished Goods Inventory for 2015
3. Compute the unadjusted Cost of Good Sold for 2015.
4. What is the under or overapplied overhead for 2015?