Solution:
1) Predetermine overhead rate = 117,000*100/90,000 = 130% of direct material used
2)
Indirect labor | 113,200 |
Property tax | 8,100 |
Deperciation of equipment | 17,000 |
Maintenance | 15,000 |
Insurance | 8,500 |
Rent building | 35,000 |
Total acutal cost | 196,800 |
Direct material used = 25,000+136,000 - 12,000 =149,000
Applied overhead = 149,000*130% =193,700
Under applied overhead = 193,700 - 196,800 =3,100
3) Prepare as schedule of cost of goods manufactured for the year. Assume all raw materials ar used in production as direct materials
Direct materials | ||
Beginning raw materials | 25,000 | |
Purchase | 136,000 | |
Less: Ending raw materials | -12,000 | |
Direct materials used | 149,000 | |
Direct labor | 86,000 | |
Manufacturing overhead | 193,700 | |
Total manufacturing cost | 428,700 | |
Beginning work in process | 48,000 | |
Total cost of work in process | 476,700 | |
Less: Ending work in process | -36,000 | |
Cost of goods manufactured | 440,700 |
4) Unadjusted cost of goods sold = 69,000 + 440,700 -57,000 = 452,700
5)Missing amount
Ending balance in work in process | 36,000 |
Direct material | 9,000 |
Overhead(9,000 * 130%) | 11,700 |
Direct labor(36,000-9,000-11,700) | 15,300 |
Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis...
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 $117,000 of manufacturing overhead for an estimated allocation base of $90,000 direct material dollars to be used in production. The company has provided the following data for the just completed year: $ 136,000 $ 86,000 Purchase of raw...
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 $111,800 of manufacturing overhead for an estimated allocation base of $86,000 direct material dollars to be used in production. The company has provided the following data for the just completed year: Purchase of raw materials $ 136,000 Direct...
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 $111,800 of manufacturing overhead for an estimated allocation base of $86,000 direct material dollars to be used in production. The company has provided the following data for the just completed year: $ 130,000 $ 82,000 Purchase of raw...
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 $800,000 of manufacturing overhead for an estimated allocation base of $500,000 direct material dollars to be used in production. The company has provided the following data for the just completed year: $ 510,000 $ 90,000 Purchase of raw...
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 $118,300 of manufacturing overhead for an estimated allocation base of $91,000 direct material dollars to be used in production. The company has provided the following data for the just completed year: Purchase of raw materials $ 135,000 Direct...
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 $139,500 of manufacturing overhead for an estimated allocation base of $93,000 direct material dollars to be used in production. The company has provided the following data for the just completed year: $ 132,000 Ş 89,000 Purchase of raw...
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 $130,200 of manufacturing overhead for an estimated allocation base of $93,000 direct material dollars to be used in production. The company has provided the following data for the just completed year: Purchase of raw materials $ 137,000 Direct...
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 $111.800 of manufacturing overhead for an estimated allocation base of $86,000 direct material dollars to be used in production. The company has provided the following data for the just completed year. $ 134,000 $ 82,000 Purchase of raw...
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 $120,900 of manufacturing overhead for an estimated allocation base of $93,000 direct material dollars to be used in production. The company has provided the following data for the just completed year: Purchase of raw materials $ 136,000 Direct...
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 $136.500 of manufacturing overhead for an estimated allocation base of $91.000 direct material dollars to be used in production. The company has provided the following data for the just completed year. $ 139,000 $ 87,000 Purchase of raw...