The Enrique Company Recorded the Following Transactions for February 20x1

question 103

Essay

The Enrique Company recorded the following transactions for February 20x1:

Sales were $560,000, with sales prices determined by adding a 40% markup to the firm's manufacturing cost. The total cost of direct materials used, direct labor, and manufacturing overhead during the month was $285,000.
Note: The materials account includes both direct materials and indirect materials.
Required:

Calculate the missing values.

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Definitions:

Underapplied

Underapplied refers to a situation where the actual manufacturing overheads are more than the overheads applied to products or services based on the predetermined overhead rate.

Overapplied

A condition where the allocated or applied manufacturing overhead costs exceed the actual overhead costs incurred.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor costs.

Overapplied

A situation in cost accounting where the allocated overhead costs exceed the actual overhead costs.