Question

snead in L XY2 Co onwrses a job-onder cost wy tom and applies overhead cost to jots on the hois of direet materials mi riion С" r on the basis of rew materials purchased) In computing a pret ermined overheal rate at the beginning of the yean, the companys estimates wers masufacturing overhead cust, 3800,000: and direct materials to be used in proaction, $500,000. The company's iwentory accounts at the begioning of the year were Rw Materials Work in Process Finished Goods Begianing S 20,000 150,000 260,000 Endiag S 80,000 70,000 400,000 The following actual cests were incurred during the year: Purchase of raw material (al direct) Direct labor cost s 510,000 90,000 Manufacturing overhead costs 170,000 48,000 260,000 93,000 7,000 180,000 Indirect labor Property taxes Maintenance Rent, building Required: a)Compsute the predetermined overhend rate for the year b) Compute the amount of under- or overapplied overhead for thc year, 2. Propare a schedule of cost of goods manufactured for the year 3. Compute the cost of goods sold for the year Job 215 was started and completed during the year. What price would have been charged to the customer if the job required $8 500 in direct materials and $2.700 in direct labor cost and the company priced its jobs at 25% above cost to manufacture 5. Direct materials made up $24,000 of the $70,000 ending Work in Process inventory balance. Supply the information missing below 24,000 Direct materials Direct labor Manufacturing overhead Work in process inventory S 70,000

Answer 1

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