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ABCs cost information is provided below. Note: all numbers are in millions, so dont worry if the numbers seem small. ABC uses machine hours to allocate MOH to production. The budgeted MOH rate is $31 per machine hour.

	January 1, 2014	December 31, 2014
Direct Materials	$18	$1
Work in Process	9	52
Finished Goods	10	14

Direct materials purchased	$154
Direct manufacturing labor	96
Indirect manufacturing labor	34
Depreciation on manufacturing equipment	28
Miscellaneous Manufacturing Overhead	13
Selling costs	45
General and Administrative costs	90
Revenues	500
Machine hours used	3

Compute the following:

Cost of DM used in production?
Actual MOH Costs?
Applied MOH Costs?
MOH is Over/Under applied by ?
COGM?

COGS Before Adjustment?
COGS after adjustment?

Income Statement

Revenues
COGS
GM/GP
Operating costs:
Operating Income

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