1. Skolnick Corporation has provided the following information:

	Cost per Unit			Cost per Period
Direct materials	$	5.50
Direct labor	$	3.30
Variable manufacturing overhead	$	2.10
Fixed manufacturing overhead				$	104,000
Sales commissions	$	1.10
Variable administrative expense	$	0.75
Fixed selling and administrative expense				$	34,400

Required:

a. If 8,000 units are produced, what is the total amount of direct manufacturing cost incurred? (Do not round intermediate calculations.)

b. If 8,000 units are produced, what is the total amount of indirect manufacturing costs incurred?

2. Balerio Corporation's relevant range of activity is 12,000 units to 15,000 units. When it produces and sells 14,000 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$	6.80
Direct labor	$	3.60
Variable manufacturing overhead	$	1.90
Fixed manufacturing overhead	$	13.80
Fixed selling expense	$	3.00
Fixed administrative expense	$	1.70
Sales commissions	$	0.80
Variable administrative expense	$	0.70

Required:

a. For financial reporting purposes, what is the total amount of product costs incurred to make 14,000 units? (Do not round intermediate calculations.)

b. If 13,000 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to 2 decimal places.)

c. If 13,000 units are sold, what is the total amount of variable costs related to the units sold? (Do not round intermediate calculations. Round "Per unit" answer to 2 decimal places.)

d. If the selling price is $19.60 per unit, what is the contribution margin per unit sold? (Round "Per unit" answer to 2 decimal places.)

e. What incremental manufacturing cost will the company incur if it increases production from 14,000 to 14,001 units? (Round "Per unit" answer to 2 decimal places.)

3.

In April, Holderness Incorporated, a merchandising company, had sales of $276,000, selling expenses of $19,500, and administrative expenses of $30,500. The cost of merchandise purchased during the month was $166,000. The beginning balance in the merchandise inventory account was $39,500 and the ending balance was $53,500.

Required:

Prepare a traditional format income statement for April.

Garrison 17e Rechecks 2020-09-09

4.

Henkes Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 55,000 labor-hours. The estimated variable manufacturing overhead was $10.50 per labor-hour and the estimated total fixed manufacturing overhead was $1,061,500. The actual labor-hours for the year turned out to be 53,800 labor-hours.

Required:

Compute the company's predetermined overhead rate for the recently completed year. (Round your answer to 2 decimal places.)

5.

Meenach Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on 74,000 direct labor-hours, total fixed manufacturing overhead cost of $74,000, and a variable manufacturing overhead rate of $3.10 per direct labor-hour. Recently Job X387 was completed and required 210 direct labor-hours.

Required:

Calculate the amount of overhead applied to Job X387. (Do not round intermediate calculations.)

6.

Harnett Corporation has two manufacturing departments--Molding and Assembly. The company used the following data at the beginning of the period to calculate predetermined overhead rates:

	Molding		Assembly		Total
Estimated total machine-hours (MHs)		6,000		4,000		10,000
Estimated total fixed manufacturing overhead cost	$	36,600	$	24,400	$	61,000
Estimated variable manufacturing overhead cost per MH	$	2.00	$	4.00

During the period, the company started and completed two jobs--Job E and Job M. Data concerning those two jobs follow:

	Job E		Job M
Direct materials	$	21,400	$	8,400
Direct labor cost	$	21,600	$	8,400
Molding machine-hours		2,700		3,300
Assembly machine-hours		400		3,600

Required:

a. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate that overhead rate. (Round your answer to 2 decimal places.)

b. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the amount of manufacturing overhead applied to Job E. (Do not round intermediate calculations.)

c. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the total manufacturing cost assigned to Job E. (Do not round intermediate calculations.)

d. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 20% on manufacturing cost to establish selling prices. Calculate the selling price for Job E. (Do not round intermediate calculations.)

e. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. What is the departmental predetermined overhead rate in the Molding department? (Round your answer to 2 decimal places.)

f. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. What is the departmental predetermined overhead rate in the Assembly department? (Round your answer to 2 decimal places.)

g. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. How much manufacturing overhead will be applied to Job E? (Do not round intermediate calculations.)

h. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. Further assume that the company uses a markup of 20% on manufacturing cost to establish selling prices. Calculate the selling price for Job E. (Do not round intermediate calculations.)

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7.

During June, Briganti Corporation purchased $93,000 of raw materials on credit to add to its raw materials inventory. A total of $78,000 of raw materials was requisitioned from the storeroom for use in production. These requisitioned raw materials included $18,000 of indirect materials.

Required:

Prepare journal entries to record the purchase of materials and their use in production. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

8.

Eppich Corporation has provided the following data for the most recent month:

Raw materials, beginning balance	$	21,000
Work in process, beginning balance	$	33,000
Finished Goods, beginning balance	$	51,000

Transactions:

(1)	Raw materials purchases	$	79,000
(2)	Raw materials used in production (all direct materials)	$	78,000
(3)	Direct labor	$	53,000
(4)	Manufacturing overhead costs incurred	$	93,000
(5)	Manufacturing overhead applied	$	73,000
(6)	Cost of units completed and transferred from Work in Process to Finished Goods	$	190,000
(7)	Any overapplied or underapplied manufacturing overhead is closed to Cost of Goods Sold		?
(8)	Finished goods are sold	$	222,000

Required:

Complete the following T-accounts by recording the beginning balances and each of the transactions listed above.

9.

Bledsoe Corporation has provided the following data for the month of November:

	Beginning		Ending
Raw materials	$	26,900	$	22,900
Work in process	$	18,900	$	11,900
Finished Goods	$	49,900	$	57,900

Additional information:

Raw materials purchases	$	73,900
Direct labor cost	$	93,900
Manufacturing overhead cost incurred	$	44,090
Indirect materials included in manufacturing overhead cost incurred	$	4,190
Manufacturing overhead cost applied to Work in Process	$	42,900

Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.

Required:

Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold.

10.

Rieb Incorporated has provided the following data for the month of September. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.

	Work In Process			Finished Goods			Cost of Goods Sold			Total
Direct materials	$	3,740		$	8,820		$	47,340		$	59,900
Direct labor		9,900			24,150			130,080			164,130
Manufacturing overhead applied		6,400			11,200			62,400			80,000
Total	$	20,040		$	44,170		$	239,820		$	304,030

Manufacturing overhead for the month was overapplied by $7,300.

The company allocates any underapplied or overapplied overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.

Required:

Provide the journal entry that would record the allocation of underapplied or overapplied among work in process, finished goods, and cost of goods sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)