Wabash Products uses a job costing system and applies overhead based on direct labor cost. Last year, manufacturing ove...

Question

Question

Wabash Products uses a job costing system and applies overhead based on direct labor cost. Last year, manufacturing overhead

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Overhead rate = 2400000/1000000 = 2.4% of direct labor

Applied overhead = 1100000*2.4 = $2640000

Actual overhead = 2472000

Over applied overhead = 2640000-2472000 = 168000

Cost of goods sold ratio = 142800/168000 = 85%

Cost of goods sold before allocation = 5600000*85% = 4760000

Cost of goods sold after allocation (adjusted) = 4760000-142800 = $4617200

Add a comment

Answer 2

Similar Homework Help Questions

Wabash Products uses a job costing system and applies overhead based on direct labor cost. Last year, manufacturing ove...

Wabash Products uses a job costing system and applies overhead based on direct labor cost. Last year, manufacturing overhead was expected to be $3,584,000 and direct labor cost was estimated to be $1,400,000 (41,600 direct-labor hours). Actual manufacturing overhead amounted to $3,728,000 and direct labor cost was $1,500,000 (43,300 direct-labor hours). 85 pints Wabash allocates an over- or underapplied overhead to the three accounts-Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold-based on those account balances. At the end...
Wabash Products uses a job costing system and applies overhead based on direct labor cost. Last...

Wabash Products uses a job costing system and applies overhead based on direct labor cost. Last year, manufacturing overhead was expected to be $2,684,000 and direct labor cost was estimated to be $1,100,000 (40,400 direct-labor hours). Actual manufacturing overhead amounted to $2,796,000 and direct labor cost was $1,200,000 (42,700 direct-labor hours). Wabash allocates an over- or underapplied overhead to the three accounts—Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold—based on those account balances. At the end of the...
Christine Corp. applies manufacturing overhead to production at 90% of direct labor cost. During the year...

Christine Corp. applies manufacturing overhead to production at 90% of direct labor cost. During the year ended 20xx, manufacturing overhead of $225,180 was applied to production; actual manufacturing overhead was $188,600. Beginning Work in Process Inventory was $23,100, and beginning Finished Goods Inventory was $44,700. Work in Process Inventory decreased by 25% during the year and Finished Goods Inventory decreased by 20% during the year. Adjusted Cost of Goods Sold was $623,200 for the year ended 20xx. Complete the following...

The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the...

The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $342,000 of manufacturing overhead for an estimated allocation base of 950 direct labor-hours. The following transactions took place during the year: 1. Raw materials purchased on account, $210,000. 2. Raw materials used in production (all direct materials), $195,000. 3. Utility bills incurred on account, $61,000 (95% related to...
1) Orpa Company produces non-motorized boats. Orpa uses a normal costing system and allocates manufacturing overhead...

1) Orpa Company produces non-motorized boats. Orpa uses a normal costing system and allocates manufacturing overhead costs using direct labor cost. The following data is for 2020: Budgeted manufacturing overhead cost $157,500 Budgeted direct manufacturing labor cost $225,000 Actual manufacturing overhead cost $172,000 Actual direct manufacturing labor cost $250,000 Inventory balances on December 31, 2020 were: Account Ending Balance 2020 Direct Labor Hours used in ending balance Work in Process $70,000 3,000 Finished Goods $235,000 7,500 Cost of Goods...
Sloan Manufacturing Corporation applies manufacturing overhead on the basis of 120% of direct labor cost. An...

Sloan Manufacturing Corporation applies manufacturing overhead on the basis of 120% of direct labor cost. An analysis of the related accounts and job order cost sheet indicates that during the year total manufacturing overhead incurred was $420,000 and that at year-end Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold included $60,000, $40,000, and $300,000, respectively, of direct labor incurred during the current year. a) Determine the over-applied manufacturing overhead at year-end (assume it is significant). b)...

Pedriani Company uses a job order cost system and applies overhead on the basis of direct...

Pedriani Company uses a job order cost system and applies overhead on the basis of direct labor hours. On Jan01, 2017, Job No. 25 was the only job in process. Costs incurred prior to Jan01 on this job were as follows: direct materials $10,000; direct labor $6,000; and manufacturing overhead $9,000. Job No. 23 had been completed at a cost of $42,000 and was part of finished goods inventory. There was a $5,000 balance in the Raw Materials Inventory account. During the...
Weinrich Manufacturing uses a job order cost system and applies overhead to production on the basis...

Weinrich Manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor hours. On January 1, 2019, Job No. 25 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $10,000; direct labor $6,000; and manufacturing overhead $9,000. Job No. 23 had been completed at a cost of $42,000 and was part of finished goods inventory. There was a $8,000 balance in...
Weinrich Manufacturing uses a job order cost system and applies overhead to production on the basis...

Weinrich Manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor hours. On January 1, 2019, Job No. 25 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $10,000; direct labor $6,000; and manufacturing overhead $9,000. Job No. 23 had been completed at a cost of $42,000 and was part of finished goods inventory. There was a $8,000 balance in...

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formu

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $900,000 of total manufacturing overhead for an estimated activity level of 75,000 machine-hours.During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s cost...

Wabash Products uses a job costing system and applies overhead based on direct labor cost. Last year, manufacturing ove...

Homework Answers

Add Answer to:
Wabash Products uses a job costing system and applies overhead based on direct labor cost. Last year, manufacturing ove...

Post as a guest

Earn Coins