1. Determine the Allocated Factory Overhead cost for the month of August for Ford using the following information. The allocation base is direct labor costs.
Estimated Direct Labor Used yearly: $125,000
Estimated Indirect Costs (factory overhead) yearly: $62,500
Direct Labor Used during August: $55,000
2. Wilson Sports manufactures leather footballs in their factory. Identify each of the following as a Direct Material, Direct Labor or Factory Overhead example for Wilson's football production:
Thread for footballs Direct Material
Employee putting completed footballs in a box ________
Factory foreman's salary ________
Leather for footballs ________
Factory utilities ________
3. Compute Cost of Goods Manufactured using the following information:
Direct Materials Used: $30,000
Factory (Manufacturing) Overhead: $4,000
Beginning Work in Process Inventory: $10,000
Ending Work in Process Inventory: $3,000
Direct Labor: $20,000
Finished Goods Inventory: $13,000