Question

1. Compute a predetermined overhead rate. 2. Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. 3. Compute underapplied or overapplied overhead cost and prepare the journal entry to dlose the balance in Manufacturing Overhead to the appropriate accounts. Cost of Goods Manufactured and Cost of Goods Sold - Excel FILE REVIEW HOME INSERT PAGE LAYOUT FORMULAS DATA Sign In VIEW Calbri A. Alignment Number Conditional Format as Cell Paste BIU- Cells Editing Formatting Table Styles Clipboard Font Styles Al Stanford Enterprises uses job-order costing. н 1 Stanford Enterprises uses job-order costing. 2 The allocation base for overhead is direct labor hours. 4 Data for the vear just ended: S Estimated total manufacturing overhead cost 6 Estimated total direct labor hours 7 Actual total direct labor hours $ 275,000 25,000 27,760 9 Actual costs for the year: 10 Purchase of raw materials (all direct) $375,000 $536,300 $302,750 11 Direct labor cost 12 Manufacturing overhead costs 13 14 Inventories: Ending Beginning 15,000 15 Raw materials (all direct) Work in process 17 11,375 22,350 26,450 16 27875 Finished goods 34,600 head 18 19 Use the data to answer the following. 20 Compute apolied overhead and determine the amount of underaealied or overanelied overhead: 21

Next to each answer, may you please include the equation that was used to find the solution.

Answer 1

1.
Predetermined overhead	Estimated manufacturing costs/Estimated direct labor hours
Predetermined overhead	275000/25000
Predetermined overhead	$11.00	per hour
Actual manufacturing overhead rate		$302,750
Predetermined overhead rate	11
Actual direct labor hours	27760	$305,360
Underapplied (overapplied)		-$2,610	(302750-305360)
Schedule of cost of goods manufactured
Direct materials
Beginning raw material inventory	$15,000
Add: Purchases of raw material	$375,000
Total raw material available (15,000+375,000)	$390,000
Less: Raw material inventory, ending	$11,375
Raw material used in production		$378,625	(390000-11375)
Direct labor		$536,300
Manufacturing overhead applied to work in process		$305,360
Total manufacturing costs		$1,220,285	(378625+536300+305360)
Add: Beginning work in process inventory		$27,875
Total cost of work in process inventory		$1,248,160	(1220285+27875)
Less: Ending work in process inventory		$22,350
Cost of goods manufactured		$1,225,810	(1248160-22350)
Schedule of cost of goods sold
Finished goods inventory, Beginning		$34,600
Add: Cost of goods manufactured		$1,225,810
Cost of goods available for sale		$1,260,410	(34600+1225810)
Less: Finished goods inventory, ending		$26,450
Unadjusted cost of goods sold		$1,233,960	(1260410-26450)
Underapplied (overapplied) overhead		-$2,610
Adjusted cost of goods sold		$1,231,350	(1233960-2610)