Question

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7 PA2-8 (Algo) Recording Manufacturing Costs, Preparing a cost of Goods Manufactured Report, and Calculating Income from Operations (LO 2-3,2-4,2-5, 2-6) 3 Book 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 $55,500 and its total manufacturing overhead cost to be $105,450. 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 ovelhead, 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. ances Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required Required Calculate the predetermined overhead rate. % of Direct Labor Cost Predetermined Overhead Rate Required 2 > < Prev 7 of 7 8 Next MacBook Air

Answer 1

Requirement 12 predetermined overhead Rate on the basis clirect Labour dollers. of fuckertermined overhead Rele Estimated overhead Direct Labour Cost x 100 $ 105 uso $ 55500 190 % 27 Requirement Raw Material Inventory. 7 gyoo Raw material Consumed. Begining Belanı 13800 purchase qu800 Ending Balance 29300 by WOOK in process Inventory. 29600 1990so Begining Balance Direct materia 68200 Direct Labour Applied OH. (190%). [78850 Ending Balance. 19100 firushed goods Inventory uisoo

finished goods Inventory Begining Balance ulooo unadjusted. Cost 191350 of goods sold + Cost of goods Complet - 199050 ed. *) Ending Balance ug 200 a) Cost of goods hold. 191350 unadjusted cost of goods sold. 166500 Adjusted Cast of goods sold. ( Balancing from cous). sales Revenue. 305000 selling Genral, and Admininistrative Expenses 26 900 18900 Admin. Salaries office Depreciation Advertising Endling Balance, 14800 60 600

9) Manufacturing overhead. 11.100 78850 (Direet taboux 1907. Applied Overhead. 14200 Indirect malerial. Indirect labour. factory Depreciation factory Rent. factory whilities other factory Costs. 11 200 5800 3000 9100 Adud overhead. suuro 3) Requirement Computation of over-or- underapplied overhead. overhead applied actual overhead, 78750 - suuoo 24350 (over applied overhead). Requirement. DOBSON, MANUFACTURING COMPANY, Cost of goods manufactured and sold Report. 13800 qu800 + Begining Raw material purchases Indirect material Ending Raw mateira 11 00 29300 ΑΣ 68200 Direct material used in production B) Direct Tabour. UI SVO

$ 109 700 78850 188530 2960o W001 218150 poime Cost (A+B). Manufacturing Cost D) Total Current manufacturing Costs . Begining work in progress E) Total in progress. Ending work in progress. F . Cast of goods manufactured. Begining stock of finished goods. . G.) Gost of goods avaliable for sale 19100 199 oso 4100s 24ooso Ending Stone of finished goods 49 200 unagy usted Cast of goods sold. 190850 overapplied. overhead. 24350 16650D I). Adjusted Cast of goods sold . Requirement. Income Statement. 305,000 Sales Revenue. 166500 Adjusted Cost of goods sold Gross profit 138500 60600 Selling genral and Administration Expenses. Net potit 77900