Question

Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production 100,000 Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour $3.ee $650,0e0 Required 1. Compute the plantwide predetermined overhead rate. 2. During the year, Job 400 was started and completed. The following information was available with respect to this job: Direct materials Direct labor cost Machine-hours used $450 $210 40 Compute the total manufacturing cost assigned to Job 400 3. If Job 400 includes 52 units, what is the unit product cost for this job? 4. If Moody uses a markup percentage of 120% of its total manufacturing cost, then what selling price per unit would it have established for Job 400?
I need help with the incorrect answers. I also need to know the amount for incorrect depreciation part.

Answer 1

The problem has two independent questions. Answer is being provided to first question only as per HOMEWORKLIB POLICY. Please post the second question separately.

Answer

uirement l Estimated fixed manufacturing overhead Estimated variable manufacturing 650,000 overhead S3 per MH x 100,000 MHs Estimated total manufacturing overhead 300,000 cost 950,000 The predetermined overhead rate is computed as follows: Estimated total manufacturing overhead Estimated total machine-hours (MHs) 950,000 100,000 MHs 9.50 per MH Predetermined overhead rate Requirement 2 Total manufacturing cost assigned to Job 400 Direct materials Direct labor Manufacturing overhead applied 450 210 (S9.5 per MH x 40 MHs) Total manufacturing cost 380 1,040 Requirement 3 Total manufacturing cost No of units Unit product cost 1,040 52 20.00 Requirement 4 Unit product cost Mark up 120% Selling Price 20.00 24.00 44.00

Statement of Cash Flow Net Income Add Depreciation Loss from sale of Equipment Deferred Income tax Accounts Payable Inventory Less Allowance for doubtful debts Accounts receivable Prepaid expenses Accrued Liability Gain from sale of Investment Gain from Insurance clanm Income from Operating activities Inflow from Investing Activities Sale of Investments Sale of Equipment Purchase of equipment Net Cash used in Investing activities Inflow from Financing activities Issue of Bonds Payable Dividends Paid Decrease in common stock Net Cash provided by financing activities Net Increase of cash during the year 63 24 80 164 100 12 123 104 10 20 (180) (150) 110 (30) 40) 40 Opening Cash Balance Closing Cash Balance 15

uirement l Estimated fixed manufacturing overhead Estimated variable manufacturing 650,000 overhead S3 per MH x 100,000 MHs Estimated total manufacturing overhead 300,000 cost 950,000 The predetermined overhead rate is computed as follows: Estimated total manufacturing overhead Estimated total machine-hours (MHs) 950,000 100,000 MHs 9.50 per MH Predetermined overhead rate Requirement 2 Total manufacturing cost assigned to Job 400 Direct materials Direct labor Manufacturing overhead applied 450 210 (S9.5 per MH x 40 MHs) Total manufacturing cost 380 1,040 Requirement 3 Total manufacturing cost No of units Unit product cost 1,040 52 20.00 Requirement 4 Unit product cost Mark up 120% Selling Price 20.00 24.00 44.00