StorSmart Company makes plastic organizing bins The company

StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March Beginning Inventory Ending Inventory Raw materials Work in process Finished goods 533,000 25,000 60,000 $22,000 44,000 58,000 Additional information for the month of March follows: Raw materials purchases Indirect materials used Direct labor Manufacturing overhead applied Actual manufacturing overhead costs Sellling, general, and administrative expenses $84,000 10,000 55,000 85,000 86,000 58,000 450,000 Sales revenue 1. Calculate the DM used during March. 2. Calculate the COGM for March. 3. Calculate the unadjusted COGS for March. 4. What was the NOI for March? Do NOT close the OH account. This is not the end of the year RM Used Beg Complete DM DL App MOH End End FG Beg COGM End Sell Unadj Adj MOH Actual Applied

Solution

1.

2.,3

4

Materials used:	Amount
Direct material used:
Opening balance	33,000
Add: purchases	84,000
Materials available	1,17,000
Less: closing inventory	22,000
Total materials used	95,000