Fauxi, Inc. makes and sells Fakes. Manufacturing Overhead is applied based on DL...
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Fauxi, Inc. makes and sells Fakes. Manufacturing Overhead is applied based on DL Hours incurred. Expected DL Hours for January 2021 850 DL Hours Expected Overhead - $42,500 . Beginning and ending inventory balances for January: 1/1/21 1/31/21 Materials Inventory $5,000 6,000 WIP $5,000 4,000 Finished Fakes Inventory $5,000 6,000 During January of 2021: Fauxi, Inc. purchased $30,000 of Materials Incurred $18,458 of Direct Labor (839 DL Hours @ $22 per DL Hour) Incurred Manufacturing Overhead totaling $40,250 . . Required: What is Cost of Goods Manufactured for January 2021? What is Cost of Goods Sold for January 2021 before closing any over/under applied overhead to COGS? What is COGS if any over/under applied overhead is closed to COGS? What is Fauxi, Inc.'s January gross profit if they sold the finished fakes for $100,000
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