# Question & Answer: Nicole Limited is a company that produces machinery to customer orders, using a normal job-order cost system. It applies manufacturing overhea…..

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Question & Answer: Nicole Limited is a company that produces machinery to customer orders, using a normal job-order cost system. It applies manufacturing overhea…..
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= 900000/1800000

= .50 or50 % of direct labor cost

= 1583600*.50

= \$ 791800

= 897000 – 791800

= \$ 105,200

b) Work in process : cost of job1768B + COst of job1819c

= [220000+110000+(110000*.50)]+[420000+390000+(390000*.50)]

= 385000+1005000

= \$ 1390000

 Amount % of allocation underapplied Overhead allocation Work in process 1390000 1390000/6045000=.2299 105200*.2299 =\$ 24186(approx 24185) Finished goods inventory 720000 720000/6045000= .1191 .1191*105200=\$12529.32 (Approx 12529) Cost of goods sold 3935000 3935000/6045000=.6510 .6510*105200= 68485.20 (approx 68485) 6045000 105200

c)

 Income statement for the period ending 2016 sales 6,201,355 Less:adjusted costof goods sold [3935000+68485] 4,003,485 Gross margin 2,197,870 Less:operating expense sales ,general and administration expense -1,857,870 Income befor tax 340000 less:Tax [340000*.40] -136000 Net income 204000