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H Opinicon Company is a manufacturing firm that uses job order costing. The company uses a lust in time purchasing system and therefore does not
H Opinicon Company is a manufacturing firm that uses job order costing. The company uses a lust in time purchasing system and therefore does not have any raw material intory The company's inventory balances at the beginning and end of the year were as follows: M 3 5 Work in process 6 Finished goods Beginning Balance Ending Balance $ 27,000 $ 9,000 $ 62,000 5 77,000 7 The company applies overhead to jobs using a predetermined overhead rate based on machine hours. At the beginning of the year, the company estimated the following 9 Manufacturing overhead cost S 227,700 10 Machine hours 33,00 11 12 The following actual transactions and activities were recorded for the year 13 Raw materials purchased and used in production 14 Direct materiali S 281,000 15 Indirect materials $ 26,000 16 Direct Labour $ 377,000 12 Indirect labour S 96,000 Administrative salaries $ 172,000 Sales salaries S 147,000 20 Utilities - Factory S 10,000 21 Depreciation - Factory 5 120,000 22 Depreciation Selling & Administrative 5 7,000 Sales $ 1,253,000 24 Machine hours 14,000 26 machine hour 28 29 1(a) Compute the predetermined overhead rate for the year. 30 31 32 1 (b) Compute the amount of applied overhead for the year 33 34 351(c) Was the manufacturing overhead underapplied or overapplied? 36 What amount was this balance in manufacturing overhead account? 38 2. Propare a schedule of cost of goods manufactured for the year. 39 Opinicon Company Schedule of Cost of Goods Manufactured For the year ended XXXXXXX, 20XX III 40 41 42 43 44 4G 47 40 49 SO 51 $2 53 54 Total manufacturing costs 11 Cost of goods manufactured
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