I have the answers but I want to know how it’s done
532 000 applied THE FOLOWING DATA APPIY TO ITEMS 34-39 Welthon Manufacturing Company prepares its montly income statements on the basis of AcTUAL costs for the perod The company’s accounting records show the following operating results for the month ending May 31, 2xX Sales 5500,000 Purchases of direct materials Direct manufacturing labor 95.000 180,000 Indirect manufacturing labor.. 15,000 Factory supplies 2,000 Factory heat, light and power Depreciation plant building… 6,000 10,000 40,000 Depreciation – plant equipment…. Miscellaneous factory overhead. Marketing and administrative costs. 1,000 100,000 Inventory data May 1 Direct materials.. $8,000 May 31 $13,000 Work-in-process… 7,000 Finished goods18,000 9,000 10,000 The company uses a pre-determined overhead rate to apply overhead cost to jobs. The year was $10 per machine hours; a total of 7,500 machine hours was recorded during the month. rate for the
