Calculation of Cost of Goods Bold For the Year Ended December 31, 2018 Beginning Inventory Plus: Purchases Cost of goods available for sale Less: Ending Inventory 12.200 34.000 46.200 9,400 Cost of goods sold $36.800 Now prepare an income statement for Penny's Posies, a merchandiser, for the year ended December 31, 2019. Penny's Posies Income Statement For the Year Ended December 31, 2018 Sales revenue Less: Cost of goods sold Gross profit 550,000 36.000 13.200 Less: Operating expenses Utilities expense $ 1,200 Rent expense 4,600 Sales commissions 4,700 0.500 expense Operating Income Fart Two: Requirement 1. Calculate the Cost of Goods Manufactured for Floral World Manufacturing for the year ended December 31, 2020. Tnoin my enlouisting the street materials used during the yent. Floral World Manufacturing Calculation of Direct Materials Used For the Year Ended December 31, 2020 Beginning raw materials Inventory Plus: Purchases of direct materials Materials available for use $13,000 33.000 46,000 Less: Ending raw materials inventory Direct materials used 9.500 36.500 Calculate the Cost of Goods Manufactured for Floral World Manufacturing for the year ended December 31, 2020. (For accounts with a 60 balance, make sure to enter "0" in the appropriate cell) Floral World Manufacturing Calculation of Cost of Goods Manufactured For the Year Ended December 21, 2020 Beginning work in process inventory Plus: Manufacturing costs incurred Direct materials used Direct labor Manufacturing overhead Total manufacturing costs to account for Less: Ending work in process inventory Cost of goods manufactured $36.500 29,000 15.550 $1,050 4.500 $ 76,550 Requirement 2. Prepare an income statement for Floral World Manufacturing for the year ended December 31, 2020. Begin by calculating the cost of goods sold for the year. (For accounts with a 50 balance, make sure to enter "0" in the appropriate cell) Floral World Manufacturing Calculation of Cost of Goods Bold For the Year Ended December 31, 2020 Beginning finished goods Inventory Plus: Cost of goods manufactured Cost of goods available for Less: Ending finished goods Inventory Cost of goods sold Direct labor cost $1,100,000 Manufacturing overhead costs $ 580,000 Depreciation on manufacturing plant and equipment $ 465,000 Property taxes on plant 21,500 Direct labor cost Machine hours $1,450,000 72,500 Machine hours Sales salaries $ 23,500 Delivery drivers wages $ 16,000 Plantjanitors wages $ 9,000 55,500 hours Requirement 1. Compute Brooks' predetermined manufacturing overhead rate. Determine the formula to calculate the predetermined overhead rate, then calculate the rate. = Predetermined overhead rate The company manufactures a variety of engines for use in farm equipment. At the beginning of the current year, Elkton estimated that its overhead for the coming year would be $324,800. It also anticipated using 29,000 direct labor hours for the year. Elkton pays its employees an average of $28 per direct labor hour. Elkton just finished Job 371, which consisted of two engines for a farm equipment manufacturer. The costs and hours for this job consisted of $16,000 in direct materials used and 130 direct labor hours. Determine the formula to calculate Elkton's predetermined overhead rate based on direct labor costs, then calculate the rate. Estimated yearly overhead costs $ 324,800 Estimated yearly direct labor cost = Predetermined overhead rate 812,000 40 % of DL cost Requirement 2. Calculate the manufacturing overhead to be allocated based on direct labor cost to Job 371. Determine the formula to calculate the overhead to be allocated based on direct labor to Job 371, then calculate the manufacturing overhead allocated. (Round your answer to the nearest whole dollar.) = = Manufacturing overhead allocated Penny Rawls: 14 hours at $14 per hour Jarrod Patten: 22 hours at $14 per hour Click the icon to see the Worked Solution. Requirement 1. What is Elkland's predetermined overhead rate based on direct labor hours? Determine the formula to calculate Elkland's predetermined overhead rate based on direct labor hours, then calculate the rate. Estimated yearly direct labor hours = Predetermined overhead rate Estimated yearly overhead costs 65,250 4,350 15 per hour Requirement 2. Calculate the overhead to be allocated to each of the two jobs based on direct labor hours. Job 101 Job 102 Overhead costs $ 3,000 $ 1,260 Requirement 3. What is the total cost of Job 101? What is the total cost of Job 102? Job 101 Job 102 Direct materials 19,500 $ 12,500 Direct labor Overhead 6,000 2,520 3,000 1,260 28,500 $ 16.280 Total job cost Before the year began, Visor Manufacturing estimated that manufacturing overhead for the year would be $200,100 and that 25,600 direct labor hours would be worked. Actual results for the year included the following: Actual manufacturing overhead cost Actual direct labor hours $182,300 20,000 If the company allocates manufacturing overhead based on direct labor hours, the manufacturing overhead for the year would have been? (Round intermediary calculations to the nearest cent.) OA. $17,800 overallocated. OB. $25,900 overallocated. C. $25,900 underallocated. OD. $17,800 underallocated.