Selected T-accounts from the books of Street Manufacturing Company are provided below: Required:
1)Assuming overhead was allocated on the basis of direct labor cost,compute the predetermined overhead rate.
2)Compute the amount by which overhead was over- or underapplied.(Be sure to indicate whether over- or underapplied. )
3)Compute the cost of goods sold assuming that the company writes off any over- or underapplied overhead directly against cost of goods sold.
4)Compute net income for the period.
5)Compute the total amount of inventory that will be reported on the end-of-year balance sheet,including the balances from all of the company's inventory accounts.

Question

Selected T-accounts from the books of Street Manufacturing Company are provided below:  Required:
1)Assuming overhead was allocated on the basis of direct labor cost,compute the predetermined overhead rate.
2)Compute the amount by which overhead was over- or underapplied.(Be sure to indicate whether over- or underapplied. )
3)Compute the cost of goods sold assuming that the company writes off any over- or underapplied overhead directly against cost of goods sold.
4)Compute net income for the period.
5)Compute the total amount of inventory that will be reported on the end-of-year balance sheet,including the balances from all of the company's inventory accounts.

Quizplus · Accepted Answer

The Answer of Selected T-accounts from the books of Street Manufacturing Company are provided below:  Required:
1)Assuming overhead was allocated on the basis of direct labor cost,compute the predetermined overhead rate.
2)Compute the amount by which overhead was over- or underapplied.(Be sure to indicate whether over- or underapplied. )
3)Compute the cost of goods sold assuming that the company writes off any over- or underapplied overhead directly against cost of goods sold.
4)Compute net income for the period.
5)Compute the total amount of inventory that will be reported on the end-of-year balance sheet,including the balances from all of the company's inventory accounts.

Selected T-Accounts from the Books of Street Manufacturing Company Are