Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks! |
Ever Spring Inc. | Amount $ | |
Calculation of Overhead under applied | Note | |
Labor hours used | 200.00 | A |
Predetermined OH rate | 50.00 | B |
Overhead applied | 10,000.00 | C=A*B |
Actual Overhead | 15,000.00 | D |
Overhead under applied | 5,000.00 | E=D-C |
Calculation of finished goods inventory | ||
Cost of goods manufactured | 30,000.00 | |
Less: Cost of goods sold | 15,000.00 | |
Finished goods inventory | 15,000.00 | F |
Calculation of direct labor costs | ||
Labor hours used | 200.00 | See A |
Labor hour rate | 100.00 | G |
Direct labor costs | 20,000.00 | H=A*G |
Calculation of total manufacturing costs | ||
Direct materials used | 30,000.00 | |
Direct labor costs | 20,000.00 | |
Overhead applied | 10,000.00 | |
Total manufacturing costs | 60,000.00 | I |
Calculation of WIP inventory | ||
Total manufacturing costs | 60,000.00 | See I |
Less: Cost of goods manufactured | 30,000.00 | |
WIP inventory | 30,000.00 | J |
If under applied overhead is closed in the ratio of WIP, finished goods and cost of good sold. | |||||
WIP | Finished goods | Cost of good sold | Total | ||
Amount | 30,000.00 | 15,000.00 | 15,000.00 | 60,000.00 | K. See workings above. |
% of allocation | 50.00% | 25.00% | 25.00% | 100.00% | L |
Under applied overhead | 2,500.00 | 1,250.00 | 1,250.00 | 5,000.00 | M=K*L. This is $ 5,000* % of allocation. |
Adjusted Value | 32,500.00 | 16,250.00 | 16,250.00 | N=K+M |
Calculation of raw materials inventory | Amount $ | Note |
Raw materials purchased | 55,000.00 | |
Less: Raw materials used | 40,000.00 | |
Raw materials inventory | 15,000.00 | O |
Amount to be shown as inventory in Balance Sheet | Amount $ | |
Raw materials | 15,000.00 | See O |
WIP | 32,500.00 | See N |
Finished goods | 16,250.00 | See N |
Inventory | 63,750.00 |
21. Everspring, Inc. has the following data for 2018. its first year of operations (this means...
21. Everspring, Inc. has the following data for 2018. its first year of operations (this means all accounts had $0 beginning balances). Any over/under-applied overhead is closed out proportionately to the applicable accounts. Actual overhead $15,000 Cost of goods manufactured (unadjusted) $30,000 Cost of goods sold (unadjusted) $15,000 Predetermined overhead rate $50 per direct labor hour Direct labor hours used 200 Direct labor rate $100 per hour Raw materials purchased $55,000 Raw materials used ($30,000 direct, $10,000 indirect) $40,000 What...
Raw materials inventory, beginning of year $21,000 Raw materials inventory, end of year 23,000 Work in process inventory, beginning of year 55,000 Work in process inventory, end of year 52,000 Finished goods inventory, beginning of year 42,000 Finished goods inventory, end of year 48,000 Raw materials purchased 110,000 Indirect Materials used 6,000 Indirect Labor used 33,000 Direct Labor used 210,000 Depreciation on Factory Machines 22,000 Amount spent on other manufacturing overhead 90,000 Direct labor hours used 15,000 Predetermined overhead rate ...
Exercise 3-7 Applying Overhead; Cost of Goods Manufactured (LO3-3, LO3-4] The following cost data relate to the manufacturing activities of Chang Company during the just completed year: $ 15,000 130,000 8,000 70,000 240,000 10,000 $ 473,000 Manufacturing overhead costs incurred: Indirect materials Indirect labor Property taxes, factory Utilities, factory Depreciation, factory Insurance, factory Total actual manufacturing overhead costs incurred Other costs incurred: Purchases of raw materials (both direct and indirect) Direct labor cost Inventories: Raw materials, beginning Raw materials, ending...
The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials $ 15,000 Indirect labor 130,000 Property taxes, factory 8,000 Utilities, factory 70,000 Depreciation, factory 240,000 Insurance, factory 10,000 Total actual manufacturing overhead costs incurred $ 473,000 Other costs incurred: Purchases of raw materials (both direct and indirect) $ 400,000 Direct labor cost $ 60,000 Inventories: Raw materials, beginning $ 20,000 Raw materials, ending $ 30,000 Work...
The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials $ 15,000 Indirect labor 130,000 Property taxes, factory 8,000 Utilities, factory 70,000 Depreciation, factory 240,000 Insurance, factory 10,000 Total actual manufacturing overhead costs incurred $ 473,000 Other costs incurred: Purchases of raw materials (both direct and indirect) $ 400,000 Direct labor cost $ 60,000 Inventories: Raw materials, beginning $ 20,000 Raw materials, ending $ 30,000 Work...
The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials $ 15,000 Indirect labor 130,000 Property taxes, factory 8,000 Utilities, factory 70,000 Depreciation, factory 240,000 Insurance, factory 10,000 Total actual manufacturing overhead costs incurred $ 473,000 Other costs incurred: Purchases of raw materials (both direct and indirect) $ 400,000 Direct labor cost $ 60,000 Inventories: Raw materials, beginning $ 20,000 Raw materials, ending $ 30,000 Work...
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses $ 217,000 Purchases of raw materials $ 269,000 Direct labor ? Administrative expenses $ 154,000 Manufacturing overhead applied to work in process $ 366,000 Actual manufacturing overhead cost $ 354,000 Inventory balances at the beginning and end of the year were as follows: Beginning of Year End of Year Raw materials $ 57,000 $ 40,000 Work...
JOB ORDER COSTING spring, Inc. has the following data for 2018. The Company allocates overhead based on use of direct labor hours. Any over/under-applied overhead is closed directly to Cost of Goods Sold. Beginning Balance Ending Balance Raw Materials $20,000 Finished Goods Work in Process $75,000 $130,000 $210,000 $225,000 Actual overhead Cost of goods sold (unadjusted) Direct labor hours used (cach employee paid the same wage) Gross profit rate Operating expenses Raw materials purchased Raw materials used (545,000 direct, $5,000...
The following cost data relate to the manufacturing activities of Chang Company during the just completed year. Manufacturing overhead costs incurred: Indirect materials Indirect labor Property taxes, factory Utilities, factory Depreciation, factory Insurance, factory Total actual manufacturing overhead costs incurred Other costs incurred: Purchases of raw materials (both direct and indirect) Direct labor cost Inventories: Raw materials, beginning Raw materials, ending Work in process, beginning Work in process, ending $ 15,000 130,000 8,000 70,000 240,000 . 10,000 $ 473,000 $...
The following cost data relate to the manufacturing activities of Chang Company during the just completed year: $ 15,000 130,000 8,000 70,000 240,000 10,000 $ 473,000 Manufacturing overhead costs incurred: Indirect materials Indirect labor Property taxes, factory Utilities, factory Depreciation, factory Insurance, factory Total actual manufacturing overhead costs incurred Other costs incurred: Purchases of raw materials (both direct and indirect) Direct labor cost Inventories: Raw materials, beginning Raw materials, ending Work in process, beginning Work in process, ending $ 400,000...