Question

1. Calculate and dispose of overapplied or underapplied manufacturing overhead. 2. Calculate the cost of goods manufactured and cost of goods sold. 3. Prepare an income statement for a manufacturing firm. 5 ? X . HOME - Sign In FILE INSERT Cost of Goods Manufactured and Cost of Goods Sold - Excel PAGE LAYOUT FORMULAS DATA REVIEW VIEW AA = % D D A. Alignment Number Conditional Format as Cell - Formatting Table Styles - Calibri B I - Paste U . B. Cells Editing Clipboard Font Styles X Stanford Enterprises uses job-order costing. 1 Stanford Enterprises uses job-order costing. 2 Overhead is applied on the basis of direct labor hours. 3 The following information relates to the year just ended. 4 Data: 5 Estimated total overhead costs $ 275.000 6 Estimated total direct labor hours 25.000 7 Actual total direct labor hours 27,760 9 Actual costs for the year 10 Purchase of raw (direct) materials 11 Direct labor cost 12 Manufacturing overhead $ $ $ 375.000 536,300 302.750 $ 14 Inventories: 15 Raw Materials (All Direct) 16 Work in Process 17 Finished Goods Beginning $ 15,000 27,875 34,600 Ending 11,375 22.350 26.450

Answer 1

E F 2 A B C D 4 Data for the Year Just Ended: 5 Estimated Total manufacturing Overhead 6 Estimated total direct labor hour 7 Actual total direct labor hour $275,000 $25,000 $27,760 $375,000 $536,300 $302,750 9 Actual Cost of year 10 Purchase of raw material (all direct) 11 Direct labor cost 12 Manufacturing overhead cost 13 14 Inventories Beginning 15 Raw material $ 15.000 15,000 16 Work in process $ 27,875 17 Finished goods $ 34,600 18 19 use the data to answer 20 21 1. Overhead: 22 Actual Manufacturing overhead cost 23 Predetermined overhead rate 224 Actual total direct labor hour 25 Manufacturing overhead applied Ending $11,375 $22,350 $26,450 $302,750 $ 11.00 $27,760 Cell References E12 E5/E6 E7 E23*E24 $ 305,360 F25-F22 27 Underapplied (overapplied) $ 2,610 Explanation: (overapplied as actual overhead is less than applied overhead) Stanford Enterprises Cost of goods Manufactured 32 Direct Material : 33 Raw Material Inventory, Beginning $ 15,000 34 Add: Purchase of raw material $375,000 35 Deduct: Raw Material Inventory, Ending $11,375 36 Raw Material used in production $ 378,625 37 Direct labor $536,300 38 Manufacturing Overhead applied $ 305,360 39 Total Manufacturing cost $ 1,220,285 40 Add: Beginning work in process $ 27,875 11 Deduct: Ending work in process $22,350 12 Cost of goods manufactured $ 1,225,810 D15 E10 E15 E33+E34-E35 E11 F25 SUM(F36:F38) D16 E16 F39+F40-F41 $ 1,500,000 45 Stanford Enterprises Income Statement 47 Sales Revenue 48 Less: Cost of goods Sold 49 Finished Goods Inventory, Beginning $ 34,600 "50 Add: Cost of goods Manufactured $ 1,225,810 51 Deduct: Finished Goods Inventory Ending $26,450 52 Unadjusted cost of goods sold $ 1,233,960 53 Overapplied overhead $ 2,610 54 Adjusted cost of goods sold 55 Gross Profit 56 Less: Selling, General & Administrative expense (10% of sales) 57 Net Operating Income D17 F42 E17 F49+F50-F51 F27 F52-F53 G47-G54 G47*10% G55-656 1,231,350 268,650 150,000 118,650 60 The number higlighted in blue are the cell references, put equal to sign before these to arrive to the answer. 61 62 Predetermined overhead cost = estimated overhead / Estimated Direct labor hour 63

Answer 2

on row 27, it's actually f22-f25

Answer 3

for line 54 its F52+F53    1,233,960+ (2,610)= 1,231,350