Question

ANSWERS MUST BE FOUND BY USING FORMULAS !!!!

с E G H A B D F 1 Stanford Enterprises uses job-order costing. 2 The allocation base for overhead is direct labor hours. 3 4 Data for the year just ended: 5 Estimated total manufacturing overhead cost $ 275,000 6 Estimated total direct labor hours 25,000 7 Actual total direct labor hours 27,760 8 9 Actual costs for the year: 10 Purchase of raw materials (all direct) $375,000 11 Direct labor cost $536,300 12 Manufacturing overhead costs $302,750 13 14 Inventories: Beginning Ending 15 Raw materials (all direct) $ 15,000 $ 11,375 16 Work in process $ 27,875 $ 22,350 17 Finished goods $ 34,600 $ 26,450 18 19 Use the data to answer the following. 20 21 1. Compute applied overhead and determine the amount of underapplied or overapplied overhead: 22 Actual manufacturing overhead cost

Answer 1

Working as follows:

A D E F G H I 1 Stanford Enterprises uses job-order costing 2 The allocation base for overhead id direct labor hours 3 4 Data for the year ended: 5 Estimated total manufacturing overhead cost 6 Estimated total direct labor hours 7 Actual total direct labor hours 8 9 Actual costs for the year: 10 Purchase of raw material (all direct) 11 Direct labor cost 12 Manufacturing overhead costs $275,000 $25,000 $27,760 $375,000 $536,300 $302.750 13 14 Inventories: 15 Raw materials (all direct) 16 Work in process 17 Finished goods Beginning Ending $15,000 $11,375 $27.875 $22,350 $34,600 $26,450 18 19 20

H B C D E 21 1. compute applied overhead and determine the amount of underapplied or overapplied overhead: 22 Actual manufacturing overhead cost $302.750 23 Predetermined overhead rate $11 24 Actual direct labor hours $27.760 25 Manufacturing overhead applied $305,360 26 27 underapplied (overapplied) manufacturing overhead $2.610 28 29 2. prepare a schedule of cost of goods manfactured: 30

A B D F G H I 31 32 E Stanford Enterprise Schedule of cost of goods manufactured 33 Direct materials: 34 Raw materials inventory, beginning $15,000 35 Add: Purchase of raw material $375,000 36 Total raw materials available $390,000 37 Deduct: Raw material inventory, Ending $11,375 38 Direct material used in production 39 Direct labor 40 Manufacturing overhead applied to WIP 41 Total manufacturing cost 42 Add: Beginning work in process inventory 43 Total cost of work in process 44 Deduct: Ending work in process inventory 45 Cost of goods manufactured 46 $378,625 $536,300 $305,360 $1,220,285 $27,875 $1.248.160 $22,350 $1,225,810 47 48

А B E TI G I I 49 C Stanford Enterprise 50 Schedule of cost of goods sold 51 52 Finished goods inventory, beginning 53 Add: Cost of goods manufactured 54 Cost of goods available for sale 55 Deduct: Finsihed goods inventory, Ending 56 unadjsuted cost of goods sold 57 Overapplied overhead 58 Adjusted cost of goods sold $34,600 $1,225,810 $1.260.410 $26,450 $1,233,960 $2.610 $1,231,350
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Computation:

A B F H 31 D E Stanford Enterprise 32 Schedule of cost of goods manufactured 33 Direct materials: 34 Raw materials inventory, beginning =D15 35 Add: Purchase of raw material =E10 36 Total raw materials available =E34+E35 37 Deduct: Raw material inventory. Ending =E15 38 Direct material used in production 39 Direct labor 40 Manufacturing overhead applied to WIP 41 Total manufacturing cost 42 Add: Beginning work in process inventory 43 Total cost of work in process 44 Deduct: Ending work in process inventory 45 Cost of goods manufactured =E36-E37 =E11 =F25 =SUM(F38:F40) =D16 =F41+F42 =E16 =F43-F44 46 47 48

A B D F G H I 50 E 49 Stanford Enterprise Schedule of cost of goods sold 51 52 Finished goods inventory, beginning 53 Add: Cost of goods manufactured 54 Cost of goods available for sale 55 Deduct: Finsihed goods inventory, Ending 56 unadjsuted cost of goods sold 57 Overapplied overhead 58 Adjusted cost of goods sold =D17 =F45 =F52+F53 =E17 =F54-F55 =F27 =F56-F57