Question

Stanford Enterprises has provided its manufacturing estimated and actual data for the year end. The Controller has asked you to compute the predetermined overhead rate, the schedule of cost of goods manufactured, and the schedule of cost of goods sold. Use the information included in the Excel Simulation and the Excel functions described below to complete the task. • Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell, "=E5" was entered, the formula would output the result from cell E5, or $275,000 in this example. Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: + (plus sign to add), - (minus sign to subtract), * (asterisk sign to multiply), and / (forward slash to divide). From the Excel Simulation below, if in a blank cell"=E6+E7" was entered, the formula would add the values from those cells and output the result, or 52,760 in this example. If using the other math symbols the result would output an appropriate answer for its function. • SUM function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges to utilize this function. From the Excel Simulation below, if in a blank cell"=SUM(E10, E11, E12)" was entered, the formula would output the result of adding those three separate cells, or 1,214,050 in this example. Similarly, if in a blank cell "=SUM(E10:E12)" was entered, the formula would output the same result of adding those cells, except they are expressed as a range in the formula, and the result would be 1,214,050 in this example. ? X - 6 Sign In FILE % Cost of Goods Manufactured and Cost of Goods Sold - Excel HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Calibri - 11 - A À = % D B IU. - - A Alignment Number Conditional Format as Cell Formatting Table Styles Font Font Styles Paste Cells Editing Clipboard G1 1 Stanford Enterprises uses job-order costing. 2 The allocation base for overhead is direct labor hours. 4 Data for the year just ended: 5 Estimated total manufacturing overhead cost Estimated total direct labor hours 7 Actual total direct labor hours $ 275,000 25,000 27,760

Answer 1

Copy E E E E A Merge & Center B I U- Paste 2$ Format Painter Clipboard Font Alignment Numbe fe Q23 1. Data for the Year Just Ended: 4 $275,000 5 Estimated Total manufacturing Overhead 6 Estimated total direct labor hour 7 Actual total direct labor hour $25,000 $27,760 Actual Cost of year 10 Purchase of raw material (all direct) 11 Direct labor cost $375,000 $536,300 $302,750 12 Manufacturing overhead cost 13 14 Inventories Ending $11,375 Beginning 15 Raw material 15,000 16 Work in process $22,350 27,875 17 Finished goods $26,450 34,600 18 19 use the data to answer 20 Cell References 21 1. Compute applied overhead and determine underapplied or overapplied: $302,750 22 Actual Manufacturing overhead cost 23 Predetermined overhead rate E12 E5/E6 11.00 $27,760 24 Actual total direct labor hour E7 25 Manufacturing overhead applied 2$ 305,360 E23*E24 26 27 Underapplied (overapplied) 2$ F25-F22 2,610 Explanation: (overapplied as actual overhead is less than applied overhead) 28 29 30 Stanford Enterprises 31 Cost of goods Manufactured 32 33 Direct Material :- Raw Material Inventory, Beginning 2$ 34 15,000 D15 $375,000 Add: Purchase of raw material 35 E10 $ 390,000 Total Raw material Available 36 E34+E35 Deduct: Raw Material Inventory , Ending $11,375 37 E15 Raw Material used in production 378,625 38 E36-E37 $536,300 $ 305,360 $ 1,220,285 Direct labor E11 39 Manufacturing Overhead applied to WIP 40 F25 SUM(F38:F40) Total Manufacturing cost Add: Beginning work in process 41 42 27,875 D16 $ 1,248,160 43 F41+F42 Deduct : Ending work in process $22,350 44 E16 $ 1,225,810 Cost of goods manufactured 45 F43-F44 46 47 48 Stanford Enterprises 49 Cost of goods sold 50 51 52 Finished Goods Inventory, Beginning 34,600 D17 $ 1,225,810 $ 1,260,410 $26,450 $ 1,233,960 53 Add: Cost of goods Manufactured F45 54 Cost of goods available for sale 55 Deduct: Finished Goods Inventory Ending F52+F53 E17 56 Unadjusted cost of goods sold F54-F55 57 Overapplied overhead 2,610 F27 $ 1,231,350 58 Adjusted cost of goods sold F56-F57 59 60 61 The number higlighted in blue are the cell references, put equal to sign before these to arrive to the answer. 62 63 Predetermined overhead cost = estimated overhead / Estimated Direct labor hour 64 65