Question

PROBLEM 1 vs 2 NAME: 12000 Direct materials 7000 Direct labor 18000 Rent on factory building 12000 Sales salaries 11000 Depreciation on factory equipment Indirect labor 8000 Production supervisor's salary Utility cost of running the factory 8000 Plus $2 per unit produced Repairs on the delivery trucks 500 Plus $.25 per unit sold If 12,000 units were produced and sold, what is the total MOH for the month? List the costs you use here to derive the total: 4000 PROBLEM 2: Use the two accounts below to answer questions a., b. and c. Bal. 30,500 Work In Process for November 2,000 (7) 4,500 9,000 ??? 3,000 (5) (6) Bal. ??? (8) (9) (10) Bal. Manufacturing Overhead 10,000 (11) 9,000 5,000 6,000 a. How much overhead was applied to production this period? b. Is MOH over or underapplied? c. Do a cost of goods manufactured schedule below using direct materials of $4,500 and direct labor of $9,000, and other numbers as needed from the two accounts above. Write small and concisely, abbreviating labels is always fine. These are management reports, not financial statements.

Answer 1

1 Total MOH for the month Rent on factory building Depreciation on factory buildings Indirect labor Production supervisor salary Utility cost (12,000*$2) variable Manufacturing overheads incurred Fixed $12,000 $12,000 $8,000 $4,000 $8,000 $44,000 Variable Total $12,000 $12,000 $8,000 $4,000 $24,000 $32,000 $24,000 $68,000 Total Manufacturing overhead for the month $68,000 2 Bal 4) 5) 6) Bal Work in process for November $2,000 7) $30,500 $4,500 $9,000 $18,000 $3,000 $18,000 (Total of 8) 9) 10) minus $6,000) 8) 9) 10) Bal Manufacturing overhead $10,000 7) $9,000 $5,000 $6,000 a Overhead applied to production $18,000 b MOH is under-applied Schedule of Cost of Goods Manufactured Direct material $4,500 Direct labor $9,000 Manufacturing overhead $18,000 Total manufacturing cost $31,500 Add: Opening Work in process $2,000 Total manufacturing cost to account for $33,500 Less: Closing Work in process $3,000 Cost of goods manufactured $30,500