Question

Rock industries allocates manufacturing overhead based on direct labor cost. any overallocated or underallocated overhead is closed monthly.calculate the cost of goods manufactured for november before procation of over or under allocated overhead

Answer 1

Note: The full question is attached as picture below

Overhead Cost of one Month = Total Overhead Cost / 12 Month

Overhead Cost of one Month = $403,200 / 12 month

Overhead Cost of one Month = $33,600

So, Overhead Chargeable Per Month is $33,600

PARTICULARS AMOUNT

Direct Materials $26,000

Direct Labor $21,000

Manufacturing overhead Applied $33,600

Total Manufacturing Expenses $80,600

Less: Job Work in Process

Direct Materials $3,000

Direct Labor $1,500

Cost of Goods Sold before proration $76,100

of over or under allocated overhead