Ace Company uses absorption costing and plans to produce and sell 12,000 units in 2012 and incur costs per unit of $32 for direct materials, $20 for direct labor, $15 for variable manufacturing overhead, $6 for fixed factory overhead, $3 for variable selling cost, and $4 for fixed selling costs. Ace actually produced 14,000 units and sells 12,000 units, and actually incurs costs of $462,000 for direct materials used in production, $252,000 for direct labor, $224,000 for variable factory overhead, $70,000 for fixed factory overhead, $56,000 for variable selling costs, and $70,000 for fixed selling costs. During the year, variable factory overhead was applied as 15 cents per direct labor dollar and fixed factory overhead was applied as 30 cents for each direct labor dollar. Ace began business on 1.1.2012.
- What was the budgeted COGM?
- What was the normal COGM?
- What is the actual COGM?
- What is the amount and character of under applied or over applied factory overhead?
- What was cost of goods sold?
- What was the cost of the ending inventory of finished goods?
- What was the cost of the ending inventory of work in process?