Question

i really need help with this question

Problem 3-14 Schedule of Cost of Goods Manufactured; Overhead Analysis (LO3-3, LO3-4) Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $123,200 of manufacturing overhead for an estimated allocation base of $88,000 direct material dollars to be used in production. The company has provided the following data for the just completed year: $ $ 136.000 84,000 Purchase of raw materials Direct labor cost Manufacturing overhead costs: Indirect labor Property taxes Depreciation of equipment Maintenance Insurance Rent, building $ $ $ $ $ $ 134,000 3,200 16,000 16,000 7,200 35,000 Raw Materials Work in Process Finished Goods Beginning Ending $ 25,000 $ 10,000 $ 47,000 $36, eee $ 74,000 $ 59, eee Required: 1. Compute the predetermined overhead rate for the year, 2. Compute the amount of underapplied or overapplied overhead for the year. 3. Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials. 4. Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer. 5. Assume that the $36,000 ending balance in Work in Process includes $8,300 of direct materials. Given this assumption, supply the information missing below:

Answer 1

Master - Microsoft Excel General Σ AutoSum * Α. ta Copy - % 899 Conditional Format Formatting as Table Cell Styles Insert Delete Format 2 Clear Home Insert Page Layout Formulas Data Review View 4 Cut Calibri - 11 - A A - Wrap Text Paste Format Painter Merge & Center Clipboard Font Alignment A60 - Calculation of predetermined Overhead Rate B Estimated Manufacturing Overhead Calculation of predetermined Overhead Rate Estimated Direct Material Cost Sort & Filter Editing Find & Select Number Styles GH IT. 123200 88000 Calculation of predetermined Overhead Rate $ 1.4 per $ expensed for Direct Material 83 84 misc accounts relevent costing Process Seurities Act 1933 process II ABC Costing Accounting Theory + Ready 100% 0 9:57 AM 04/02/2020

Master - Microsoft Excel Data Review View CU90E = Home Insert Page Layout Formulas Cut Calibri - 11 - A Paste Format Painter Clipboard Font Σ AutoSum * Α. A General ta Copy - Wrap Text Merge & Center - Alignment 8.49 S - % Number Insert Delete Format Conditional Format Conditional Format Formatting as Table Styles Cell Cell Styles 2 Clear Sort & Find & Filter Select Editing B83 A 68 69 70 71 72 Calculation of Under Applied or Overapplied Overheads Total Manufacturing Overhead Total Maunfacturing Overhead Applied $216,400 Raw Material Used in Production * Overhead Rate $211,400 Raw Material Used In Production 73 74 Opening bal Add: Purchases total material available less : ending inventory raw material used in production 136000 161000 10000 151000 Since Actual overhead are more than applied oveheads, we can say that ovehead are underapplied by $5,000 (216400-211400) 82 83 90 92 misc accounts relevent costing Process Seurities Act 1933 process II ABC Costing Accounting Theory + Ready 100% 0 10:04 AM 04/02/2020

Master - Microsoft Excel View - General Σ AutoSum A CO2 = Home Insert Page Layout Formulas Data Review Cut Calibri 11-A A Paste Format Painter Clipboard Font A109 . Cost of goods manufactured A La Copy Wrap Text Merge & Center - S - % 99 Conditional Format Formatting " as Table Cell Styles Insert Delete Format 2 Clear Sort & Find & Filter Select Editing Alignment Number Styles 94 Cost of Goods Manufactured 95 96 Direct Material Cost 97 Opening bal 98 Add: Purchases 99 total material available 100 less: ending inventory 101 raw material used in production 25000 136000 161000 10000 151000 102 1.4 103 direct labour 104 manufacturing overhead applied 105 total manufacturing cost 106 add:beginning work in process 107 108 less: ending work in process 109 Cost of goods manufactured 151000 84000 211400 446400 47000 493400 36000 457400 110 111 112 misc accounts relevent costing Process Seurities Act 1933 process II ABC Costing Accounting Theory Ready Average: 457400 Count: 2 Sum: 457400 W 100% U 10:09 AM 04/02/2020

Master - Microsoft Excel Data Review View - Σ AutoSum A General A ta Copy Wrap Text Merge & Center - S - % 8,99 Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Find & Filter Select Editing Alignment Number CO2 = Home Insert Page Layout Formulas Cut Calibri - 11 - A Paste Format Painter Clipboard Font A117- A 112 113 114 115 116 Unadjusted Cost of goods Sold 117 118 Beginning Inventory of Finished goods 119 add: Cost of goods manufactured 120 cost of goods available for sales 121 less : ending inventory 122 unadjusted cost of goods sold 74000 457400 531400 59000 472400 124 125 126 229 130 131 132 133 134 135 136 + Ready misc accounts relevent costing Process Seurities Act 1933 process II ABC Costing Accounting Theory 100% 0 10:10 AM 04/02/2020

Master - Microsoft Excel Review View - General Σ AutoSum : A ta Copy Wrap Text Merge & Center - 13 S - % 89 CODE : Home Insert Page Layout Formulas Data Cut Calibri - 11 - A A Paste Format Painter Clipboard Font B129 - =+B131-B128-B130 A 123 124 Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles 2 Clear Sort & Find & Filter Select Editing Alignment Number 125 126 127 128 Direct material 129 Direct labor (balancing figure) 130 Manufacturing Oberheads 131 Closing WIP 132 133 8300 16080|Closing wip - material - manufacturing overheads 11620 Direct Material * Overhead recovery rate(8300*1.4) 36000 134 135 141 202 144 145 146 147 misc accounts relevent costing Process Seurities Act 1933 process II ABC Costing Accounting Theory + Ready 20 100% + 0 10:21 AM 04/02/2020