Question

Return to ques 13 were as follows: Raw materials Work in proces Pinished goods $ 84,500 $ 35,000 $ 44,100 Part 13 of 15 1 points The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined overhead rate of $12.50 per direct labor-hour was based on a cost formula that estimated $500,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year a. Raw materials were purchased on account, $614,000. b. Raw materials used in production, $567,600. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $450,000; indirect labor, $150,000; selling and administrative salaries, $290,000. d. Incurred various selling and administrative expenses (eg, advertising, sales travel costs, and finished goods warehousing). $375,000 e. Incurred various manufacturing overhead costs (eg. depreciation, insurance, and utilities). $350,000. f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year. 9. Jobs costing $1,461,900 to manufacture according to their job cost sheets were completed during the year. h. Jobs were sold on account to customers during the year for a total of $3,172,500. The jobs cost $1,471,900 to manufacture according to their job cost sheets

Answer 1

Adjusted Cost of goods sold : Beginning Finished goods inventory Add: Cost of goods manufactured Less : Ending Finished goods inventory Unadjusted Cost of goods sold Less : Overapplied Overhead Adjusted Cost of goods sold $ 44,100 $ 1,461,900 $ (34,100) $ 1,471,900 $ (12,500) $ 1,459,400 *Overapplied Overhead : Actual Manufacturing Overhead $ 500,000 Applied Manufacturing Overhead (41000*12.5) $ 512,500 Overapplied Overhead $ (12,500)