Question

Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $59,600 and its total manufacturing overhead cost to be $101,320. Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement. Requlred: 1. Calculate the predetermined overhead rate. 2. Fill in the missing values in the T-accounts. 3. Compute over-or underapplied overhead. 4. Prepare a statement of cost of goods manufactured and sold including the adjustment for over- or underapplied overhead. 5. Prepare a brief income statement for the company. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Fill in the missing values in the T-accounts. Raw Materials Inventory Work in Process Inventory Beginning Balance 13,000 Beginning Balance 29,300 Direct Materials 95.000 Purchases 68,900 29.400 Direct Labor Ending Balance S 41,200 Applied Overhead Ending Balance 19.600 Finished Goods Inventory Cost of Goods Sold Beginning Balance 41,200 Unadjusted Cost of Goods Sold Adjusted Cost of Goods Sold Cost of Goods Completed 49,500 Ending Balance Manufacturing Overhead Sales Revenue Applied Overhead 317,000 Indirect Materials 9.700 Indirect Labor 14,900 Factory Depreciation 13,000 Factory Rent 5.100 Factory Utilities 1.100 Other Factory Costs 9.100 Actual Overhead 52,900 Selling, General, and Administrative Expenses Adm. Salaries 28,300 Office Depreciation 19,500 14,200 Advertising 60,000 Ending Balance

Answer 1

Answer with working is given below

1. Predetermined overhead rate Manufacturing Overhead Direct Labour cost $101,320 $59,600 170% Beginning balance Purchases Ending balance Raw Material Inventory $13,000 $68,900 WIP Inventory $95,000 $9,700 Manufacturing Overhead $29,400 Beginning balance Direct Material Direct Labour Applied Overhead Ending balance Work in process Inventory $29,300 $189,840 Finished Goods Inventory $68,900 $41,200 $70,040 $19,600 Beginning balance Cost of Goods completed Ending balance Finished Goods Inventory $41,200 $181,540 Cost of Goods Sold $189,840 $49,500 Cost of Goods Sold Unadjusted Cost of Goods sold $181,540 Adjusted Cost of Goods Sold $164,400 Sales Revenue $217,000 $317,000 Selling, General and Administrative Expenses Adm. Expenses $26,300 Office Depreciation $19,500 Advertising $14,200 Ending Balance $60,000 Indirect Material Indirect Labour Factory Depreciation Factory Rent Factory Utilities Other Factory Overheads Actual Overheads Manufacturing Overhead $9,700 $70,040 Applied Overhead $14,900 $13,000 $5,100 $1,100 $9,100 $52,900 3. Over or Under applied overheads Actual Overheads Applied Overheads Over absorbed Overheads $52,900 $70,040 $17,140 4. Statement of Goods Manufactured and sold Direct Material consumed $68,900 Direct Labour $41,200 Prime Cost $110,100 Manufacturing overheads applied Factory cost of production Opening WIP Closing WIP Cost of Goods Manufactured Add: Opening stock of FG $70,040 $180,140 $29,300 $209,440 $19,600 $189,840 $41,200 $231,040 $49,500 $181,540 -$17,140 $164,400 Less: Closing stock of FG Cost of Goods Sold Less: Over absorbed Overheads Adjusted Cost of Goods sold Income Statement Sales Less: Cost of Goods sold (Adjusted) Gross profit Less: Operating expenses Selling, General and Admn Expenses Net Profit $317,000 $164,400 $152,600 $60,000 $92,600