| 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 $51,300 and its total manufacturing overhead cost to be $87,210. |
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| Several incomplete general ledger accounts showing the transactions that occurred during the most recent accounting period follow: |
| 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. |
1. value 10.00 points 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 $51,300 and its total manufacturing overhead cost to be $87,210 Several incomplete general ledger accounts showing the transactions that occurred during the most recent accounting period follow: Required 1. Calculate the predetermined overhead rate Predetermined Overhead Rate 1701 % of Direct Labor Cost 2. Fill in the missing values in the T-accounts. Raw Materials Inventory Work in Process Inventory Beginning Balance Purchases Ending Balance 13,200 93,200 29,000 77,400 Beginning Balance Direct Materials Direct Labor Applied Overhead Ending Balance 29,200 68,600 41,500 70,550 19,500 190,350 Finished Goods Inventory Cost of Goods Sold Beginning Balance Cost of Goods Completed Ending Balance 41,700 190,350 48,100 183,950 Unadjusted Cost of Goods Sold Adjusted Cost of Goods Sold 183,950 164,300 Sales Revenue Manufacturing Overhead 304,000 Indirect Materials 8,800 70,550 Applied Overhead Indirect Labor 14,100 2. Fill in the missing values in the T-accounts. Raw Materials Inventory Work in Process Inventory Beginning Balance Purchases Ending Balance 13,200 93,200 29,000 77,400 Beginning Balance Direct Materials Direct Labor Applied Overhead Ending Balance 29,200 68,600 $41,500 70,550 19,500 190,350 Finished Goods Inventory Cost of Goods Sold Beginning Balance Cost of Goods Completed Ending Balance 41,700 190,350 48,100 183,950 Unadjusted Cost of Goods Sold 183,950 Adjusted Cost of Goods Sold 164,300 Sales Revenue Manufacturing Overhead Indirect Materials Indirect Labor Factory Depreciation Factory Rent Factory Utilities Other Factory Costs Actual Overhead 8,800 14,100 11,200 6,600 1,700 8,500 50,900 304,000 70,550 Applied Overhead Selling, General, and Administrative Expenses Adm. Salaries Office Depreciation Advertising Ending Balance 27,500 18,200 14,200 59,900 3. Compute over- or underapplied overhead Manufacturing Overhead Overapplied by 19,650 4. Prepare a statement of cost of goods manufactured and sold including the adjustment for over- or underapplied overhead. DOBSON MANUFACTURING COMPANY Cost of Goods Manufactured Report and Sold inning Raw Materials Inventory Plus: Raw Material Purchases Less: Indirect Material Used Less: Ending Raw Materials Inventory Direct Materials Used in Production rect Labor nufacturing Overhead Total Current Manufacturing Costs 0 Total Work in Process Less: Ending Work in Process Inventory Cost of Goods Manufactured Plus: Beginning Finished Goods Inventory Cost of Goods Available for Sale Less: Ending Finished Goods Inventory Unadjusted Cost of Goods Sold Less: Ending Raw Materials Inventory Direct Materials Used in Production irect Labor ufacturing Overhead Total Current Manufacturing Costs Total Work in Process Less: Ending Work in Process Inventory Cost of Goods Manufactured Plus: Beginning Finished Goods Inventory Cost of Goods Available for Sale Less: Ending Finished Goods Inventory Unadjusted Cost of Goods Sold ufacturing Overhead Beginning Raw Materials Inventory Adjusted Cost of Goods Sold 5. Pr epare a brief income statement for the company. DOBSON MANUFACTURING COMPANY Income Statement Sales Revenue Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Net Income from Operations
