I'd love to know how you solve all of these so I can duplicate it to get the answers to make sure I know how to do these. Thanks in advance for your help! I will be sure to give a thumbs up.
1) Predetermined overhead rate= Estimated total manufacturing overhead cost/Estimated total direct labor hours
= ($1.50*3600+14400)/3600= $5.50 per DLH
2) Manufacturing overhead applied to Job P= 2700*$5.50= $14850
Manufacturing overhead applied to Job Q= 800*$5.50= $4400
3) Direct labor hourly wage rate of Job P= $40500/2700= $15 per DLH
Direct labor hourly wage rate of Job Q= $12000/800= $15 per DLH
4-a)
Direct materials | $15000 |
Direct labor | 40500 |
Manufacturing overhead applied | 14850 |
Total manufacturing cost | $70350 |
/ Number of units | 35 |
Unit product cost | $2010 |
b)
Direct materials | $9600 |
Direct labor | 12000 |
Manufacturing overhead applied | 4400 |
Total manufacturing cost | $26000 |
5)
Transaction | General Journal | Debit | Credit |
1. | Raw materials (15000+9600+2600) | $27200 | |
Accounts payable | $27200 | ||
(To record raw materials purchased on account) | |||
2 | Work in process (15000+9600) | $24600 | |
Raw materials | $24600 | ||
(To record direct materials issued) |
6)
Transaction | General Journal | Debit | Credit |
1. | Work in process (40500+12000) | $52500 | |
Wages payable | $52500 | ||
(To record direct labor costs added to production) | |||
7)
Transaction | General Journal | Debit | Credit |
1. | Work in process (14850+4400) | $19250 | |
Manufacturing overhead | $19250 | ||
(To record manufacturing overhead applied) | |||
8)
Schedule of Cost of Goods Manufactured | ||
Direct materials: | ||
Beginning raw materials inventory | $0 | |
Add: Purchases of raw materials | 27200 | |
Total raw materials available | 27200 | |
Less: Ending raw materials inventory | -2600 | |
Raw materials used in production | 24600 | |
Direct labor | 52500 | |
Manufacturing overhead applied | 19250 | |
Total manufacturing costs | 96350 | |
Add: Beginning work-in process inventory | 0 | |
Total cost of work-in process | 96350 | |
Less: Ending work-in process inventory | -26000 | |
Cost of goods manufactured | $70350 |
9)
Transaction | General Journal | Debit | Credit |
1. | Finished goods | $70350 | |
Work in process | $70350 | ||
(To record transferred of work in process to finished goods) | |||
10)
Work in Process | |||
Beg. Bal. | $0 | ||
Materials | 24600 | 70350 | Finished goods |
Labor | 52500 | ||
Applied overhead | 19250 | ||
End. Bal. | $26000 |
11)
Schedule of Cost of Goods Sold | |
Beginning finished goods inventory | $0 |
Add: Cost of goods sold | 70350 |
Cost of goods available for sale | 70350 |
Less: Ending finished goods inventory | 0 |
Unadjusted cost of goods sold | $70350 |
12)
Transaction | General Journal | Debit | Credit |
1. | Cost of goods sold | $70350 | |
Finished goods | $70350 | ||
(To record transferred of finished goods to Cost of goods sold) | |||
13) Under or overapplied overhead= Manufacturing overhead applied-Actual manufacturing cost
= $19250-19500= $250 underapplied
Underapplied overhead $250
14)
Transaction | General Journal | Debit | Credit |
1. | Cost of goods sold | $250 | |
Manufacturing overhead | $250 | ||
(To record underapplied overhead close to cost of goods sold) | |||
15)
Income Statement for March | |
Sales (35*$2600) | $91000 |
Less: Cost of goods sold (70350+250) | -70600 |
Gross profit | 20400 |
Less: Selling and administrative expenses | -13000 |
Net income | $7400 |
I'd love to know how you solve all of these so I can duplicate it to...
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