Answers for the questions:

A) 695 B) 149,425 C) 9,425 (Overapplied overhead cost) D) 338,950 E) 209,025

(Chapter 4) Chapter 4 Problem 1 Please use the following information to answer questions G-e: Gateway hod only one lob in process during August (Job 2922) and had no finished goods inventory on August 14 Job 2922 was started in July and finished during August. Data pertaining to the job is as follows: Job 2922 Beginning WIP balance on August Materials ($172,000 wos Direct) Labor ($207.000 was Direct) Additional Overhead Costs Units Completed Units in Process at the end of August Units Sold during August 28,975 190,000 213,000 116,000 200 125 *Estimated total manufacturing overhead for August was $145,950. The predetermined overhead rate was made on the basis of direct labor hours. The estimated direct labor hours in August were 210 hours. The actual direct labor hours totaled 215 hours a) What is Gateway's predetermined overhead rate for August? 145,950 - 695 210 b) What is the amount of manufacturing overhead that would be applied to units of product during the periode 695 215=149,425 c) Was overhead underapplied or overapplied for the month of August? And by how much? 18,000 6,000 116,000 140,000 149,425 9,425 d) What was the Adjusted Cost of Goods Sold for August? (Note: You may use the direct or indirect method to solve.) e) What is the total value of Finished Goods Inventory at the end of August