Question

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 $50,800 and its total manufacturing overhead cost to be $76,200. points Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement. eBook Print Required: 1. Calculate the predetermined overhead rate. 2. Fill in the missing values in the T-accounts. 3. Compute over- or underapplied overhead. 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. References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Calculate the predetermined overhead rate. Predetermined Overhead Rate 1% of Direct Labor Cost Required 1 Required 2 >

Answer 1

1)	predetermined overhead rate				150%	% of Direct labor cost
	76200/50800
2)	Raw materials inventory					Work in process inventory
	Beg bal	14,600	79,200	requisitioned		Beg bal	29,300	178,850	finished goods
	purchases	93,700				DM	68900
	end bal	29,100				DL	40100
						applied oh	60150
						end bal	19,600
	Finished goods inventory					cost of goods sold
	Beg bal	41,100	171,350	COGS		finished	171,350
	completed	178,850				adjusted	161,200
	end bal	48600
	sales revenue					Manufacturing overhead
			306,000			I materials	10,300	60150	applied overhead
						ind labor	13,300
						fac dep	11,300
						fact rent	5,800
						fact utilities	1,000
						other fc	8,300
						Actual	50,000
	Selling ,general & adm expense
	adm salaries	26,200
	office dep	18,300
	advertising	13,100
	end bal	57,600
3)	manufacturing overhead			10,150	over applied
4)	cost of goods manufactured report and sold
	beginning raw materials inventory					14,600
	plus:raw material purchases					93,700
	less:indirect material used					10,300
	less:ending raw materials inventory					29,100
	direct materials used in production					68,900
	direct labor					40100
	manufacturing overhead					60150
	total current manufacturing costs					169,150
	plus:beginning work in process inventory					29,300
	total work in process					198,450
	less:ending work in process					19,600
	cost of goods manufactured					178,850
	plus:beginning finished goods inventory					41,100
	cost of goods available for sale					219,950
	less:ending finished goods inventory					48600
	unadjusted cost of goods sold					171,350
	adjustment for overapplied overhead					10,150
	adjusted cost of goods sold					161,200
5)	income statement
	Sales revenue					306,000
	cost of goods sold					161,200
	Gross profit					144,800
	selling,general and adm expense					57,600
	net income from operations					87,200