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 $56,400 and its total manufacturing overhead cost to be $101,520. Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement. Required: 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 Calculate the predetermined overhead rate. Predetermined Overhead Rate % of Direct Labor Cost < Required 1 Required 2 >

Answer 1

here solution is as follows

Solution predetermined rate of overhead Total overhead Totad labor cast xloo $101520 *100 = $56400 1807. Missing values in The T A Collents Raw material inventory opening Balance for chales Bal bed Ball production department 14100 94400- 29700 138 200 10 8500 Ry Bal old 138200. 24 700 Finished Goods Inventory 4057D. 9000 49500. Ceas genpleted opening Balace taht of Goods completed Trading Ale ( 49500 149520 Hork in progress Inventory Begning Agreet materiel By cast of Good eld 214220, Direct labor (Bal) Applied overhead 74 520. 11 Bal eld (180% on 1400) to bat. To 2338 20. 1960 Sales revenue Trading All By hals revene So loco 29700 68 6eo. 4) 400 19600 233820, To bal old TO 309090 CS Scanned with CamScanner

14100 Mauren fue turning overhead & indirect maturiat 10200 Indrreet labor Applied overhead 11600 100%om Dreat label 180 x 4 1400 100 othing Feltoy bort over abhorption 21120- Fatory pepticom remt 74 59o. 6200 92.00. 74120 74520 3 Here over absorption of manufacturing overheadis going on. on overhead as per predetermined rate is $ 74520 Casoy, on 41400 direct labor) but altalie$55600 over absorption is 21120 it. (74520-5400) to 850o. Um Adjusted cost of Good sold material used 21 4220 Addi Work in progress ĝ7322o. 49500 kesi Goods of finished Adjusted cost of Goods sold em Adjusted cast of Goods fold 273220 less! over Abscaption of overhed. Adjusted Colt of goods and 21120 , 252100 CS Scanned with CamScanner

Caht of Good manufactured and sold repost 193100- opearing Balance of materials. 14100 + purchases. 94-400 material used in production Deportment 1087oo. Add cost of working progress 2147 220. 214-220 lexste over abtroption of over hend. T20 143100 le! Closing work in progress Cost of Goods manufactured. Cost of Goods avilable for sule 4.9.500 UmAdjusted coht of Goods sold 273220 lels: over abbroption of cost 21120 Adjusted cost of Goods sold 252 100. 322720 I'm Come statement Sales. 30 2000 Accounts payable 252100 est selling administration & Gunnal rep nel in love from operation 49900 61400 € 11500) CS Scanned with CamScanner

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