Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor hours At the beginning of the year, it estimated that 44,000 direct labor hours would be required for the periods estimated level of production The company also estimated $529,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $3 00 per direct labor hour Harris's actual manufacturing overhead for the year was $744,161 and its actual total direct labor was 44,500 hours Required Compute the company's predetermined overhead rate for the year (Round your answer to 2 decimal places ) Primare Corporation has provided the following data concerning last months manufacturing operations Purchases of raw materials $ 31,000 Indirect materials included in manufacturing overhead $ 4,910 Direct labor $ 59,700 Manufacturing overhead applied to work in process $ 89,000 Underapplied overhead $ 4,110 Inventories Beginning Ending Raw materials $ 10,100 $ 19,600 Work in process $ 55,000 $ 67,000 Finished goods $ 33,900 $ 43,300 Required 1 Prepare a schedule of cost of goods manufactured for the month 2 Prepare a schedule of cost of goods sold for the month The following data from the just completed year are taken from the accounting records of Mason Company Sales $ 652,000 Direct labor cost $ 90,000 Raw material purchases $ 137,000 Selling expenses $ 104,000 Administrative expenses $ 46,000 Manufacturing overhead applied to work in process $ 209,000 Actual manufacturing overhead costs $ 222,000 Inventories Beginning of Year End of Year Raw materials $ 8,200 $ 10,500 Work in process $ 5,200 $ 20,600 Finished goods $ 75,000 $ 25,400 Required 1 Prepare a schedule of cost of goods manufactured Assume all raw materials used in production were direct materials 2 Prepare a schedule of cost of goods sold 3 Prepare an income statement Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand The company uses a job order costing system and computes predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base Its estimated costs, by quarter, for the coming year are given below Quarter First Second Third Fourth Direct materials $ 280,000 $ 140,000 $ 70,000 $ 210,000 Direct labor 120,000 60,000 30,000 90,000 Manufacturing overhead 230,000 206,000 194,000 Total manufacturing costs (a) $ 630,000 $ 406,000 $ 294,000 $ Number of units to be produced (b) 80,000 40,000 20,000 60,000 Estimated unit product cost (a b) $ 7 88 $ 10 15 $ 14 70 $ Management finds the variation in quarterly unit product costs to be confusing and difficult to work with It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product Required 1 a Using the high low method, estimate the fixed manufacturing overhead cost per quarter and the variable manufacturing overhead cost per unit (Round the Variable manufacturing overhead per unit to 2 decimal places ) 1 b Compute the total manufacturing cost and unit product cost for the fourth quarter (Round the Unit product cost to 2 decimal places ) 3 Estimate the total manufacturing overhead cost for the year and an annual predetermined overhead rate (Round the Predetermined overhead rate to 2 decimal places ) White Company has two departments, Cutting and Finishing The company uses a job order costing system and computes a predetermined overhead rate in each department The Cutting Department bases its rate on machine hours, and the Finishing Department bases its rate on direct labor hours At the beginning of the year, the company made the following estimates Department Cutting Finishing Direct labor hours 7,800 74,000 Machine hours 60,800 3,300 Total fixed manufacturing overhead cost $ 390,000 $ 515,000 Variable manufacturing overhead per machine hour $ 3 00 Variable manufacturing overhead per direct labor hour $ 2 75 Required 1 Compute the predetermined overhead rate to be used in each department (Round your answers to 2 decimal places ) 2 Assume that the overhead rates you computed in (1) above are in effect The job cost sheet for Job 203, which was started and completed during the year, showed the following Department Cutting Finishing Direct labor hours 4 18 Machine hours 81 4 Materials requisitioned $ 770 $ 380 Direct labor cost $ 43 $ 160 Compute the total manufacturing cost assigned to Job 203 (Round your intermediate and final answers to 2 decimal places ) 3 Would you expect substantially different amounts of overhead cost to be charged to some jobs if the company used a plantwide overhead rate based on direct labor hours instead of using departmental rates Yes No The following information is taken from the accounts of Latta Company The entries in the T accounts are summaries of the transactions that affected those accounts during the year Manufacturing Overhead Work in Process (a) 351,000 (b) 406,000 Bal 105,300 (c) 757,000 210,000 Bal 55,000 115,900 (b) 406,000 Bal 80,200 Finished Goods Cost of Goods Sold Bal 157,000 (d) 816,000 (d) 816,000 (c) 757,000 Bal 98,000 The overhead that had been applied to production during the year is distributed among the ending balances in the accounts as follows Work in process, ending $ 36,540 Finished goods, ending 73,080 Cost of goods Sold 296,380 Overhead applied $ 406,000 For example, of the $80,200 ending balance in work in process, $36,540 was overhead that had been applied during the year Required 1 Identify the reasons for entries (a) through (d) 2 Assume that the company closes any balance in the manufacturing overhead account directly to cost of goods sold Prepare the necessary journal entry (If no entry is required for a transaction event, select No journal entry required in the first account field ) 3 Assume instead that the company allocates any balance in the manufacturing overhead account to the other accounts in proportion to the overhead applied during the year that is in the ending balance in each account Prepare the necessary journal entry (If no entry is required for a transaction event, select No journal entry required in the first account field Do not round intermediate calculations ) The following information applies to the questions displayed below Delph Company uses a job order costing system and has two manufacturing departmentsMolding and Fabrication The company provided the following estimates at the beginning of the year Molding Fabrication Total Machine hours 33,000 43,000 76,000 Fixed manufacturing overhead costs $ 760,000 $ 260,000 $ 1,020,000 Variable manufacturing overheadper machine hour $ 5 80 $ 5 80 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobsJob D 70 and Job C 200 It provided the following information related to those two jobs Job D 70 Molding Fabrication Total Direct materials cost $ 373,000 $ 320,000 $ 693,000 Direct labor cost $ 240,000 $ 170,000 $ 410,000 Machine hours 23,000 10,000 33,000 Job C 200 Molding Fabrication Total Direct materials cost $ 300,000 $ 280,000 $ 580,000 Direct labor cost $ 140,000 $ 250,000 $ 390,000 Machine hours 10,000 33,000 43,000 Delph had no overapplied or underapplied manufacturing overhead during the year 7 value 10 00 points Required information Assume Delph uses a plantwide overhead rate based on machine hours Required 1 a Compute the predetermined plantwide overhead rate (Round your answer to 2 decimal places ) 1 b Compute the total manufacturing costs assigned to Job D 70 and Job C 200 (Round your intermediate calculations to 2 decimal places ) 1 c If Delph establishes bid prices that are 150 of total manufacturing costs, what bid price would it have established for Job D 70 and Job C 200 (Round your intermediate calculations to 2 decimal places ) 1 d What is Delphs cost of goods sold for the year (Round your intermediate calculations to 2 decimal places ) Gold Nest Company of Guandong, China, is a family owned enterprise that makes birdcages for the South China market The company sells its birdcages through an extensive network of street vendors who receive commissions on their sales All of the companys transactions with customers, employees, and suppliers are conducted in cash there is no credit The company uses a job order costing system in which overhead is applied to jobs on the basis of direct labor cost Its predetermined overhead rate is based on a cost formula that estimated $76,000 of manufacturing overhead for an estimated activity level of $40,000 direct labor dollars At the beginning of the year, the inventory balances were as follows Raw materials $ 10,600 Work in process $ 4,300 Finished goods $ 8,400 During the year, the following transactions were completed a Raw materials purchased for cash, $163,000 b Raw materials requisitioned for use in production, $142,000 (materials costing $122,000 were charged directly to jobs the remaining materials were indirect) c Costs for employee services were incurred as follows Direct labor $ 177,000 Indirect labor $ 252,500 Sales commissions $ 21,000 Administrative salaries $ 47,000 d Rent for the year was $18,900 ($13,600 of this amount related to factory operations, and the remainder related to selling and administrative activities) e Utility costs incurred in the factory, $19,000 f Advertising costs incurred, $12,000 g Depreciation recorded on equipment, $21,000 ($17,000 of this amount was on equipment used in factory operations the remaining $4,000 was on equipment used in selling and administrative activities ) h Manufacturing overhead cost was applied to jobs, $ i Goods that had cost $229,000 to manufacture according to their job cost sheets were completed j Sales for the year totaled $503,000 The total cost to manufacture these goods according to their job cost sheets was $218,000 Required 1 Prepare journal entries to record the transactions for the year (If no entry is required for a transaction event, select No journal entry required in the first account field Round your intermediate calculations to 2 decimal places ) 2 Prepare T accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold Post relevant data from your journal entries to these t accounts (dont forget to enter the beginning balances in your inventory accounts) (Round your intermediate calculations to 2 decimal places ) 3 a Is Manufacturing Overhead underapplied or overapplied for the year Overapplied Underapplied 3 b Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold (If no entry is required for a transaction event, select No journal entry required in the first account field Round your intermediate calculations to 2 decimal places ) 4 Prepare an income statement for the year (Round your intermediate calculations to 2 decimal places )

Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 44,000 direct

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(a) 351,000

(b) 406,000

Bal. 105,300

(c) 757,000

Bal. 55,000

(b) 406,000

Bal. 80,200

Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 44,000 direct labor-hours would be required for the periods estimated level of production. The company also estimated $529,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. Harris's actual manufacturing overhead for the year was $744,161 and its actual total direct labor was 44,500 hours.

Required:

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

Primare Corporation has provided the following data concerning last months manufacturing operations.


Purchases of raw materials	$	31,000
Indirect materials included in manufacturing overhead	$	4,910
Direct labor	$	59,700
Manufacturing overhead applied to work in process	$	89,000
Underapplied overhead	$	4,110

Inventories	Beginning	Ending
Raw materials	$	10,100	$	19,600
Work in process	$	55,000	$	67,000
Finished goods	$	33,900	$	43,300

Required:

1.	Prepare a schedule of cost of goods manufactured for the month.

2.	Prepare a schedule of cost of goods sold for the month.

The following data from the just completed year are taken from the accounting records of Mason Company:


Sales	$	652,000
Direct labor cost	$	90,000
Raw material purchases	$	137,000
Selling expenses	$	104,000
Administrative expenses	$	46,000
Manufacturing overhead applied to work in process	$	209,000
Actual manufacturing overhead costs	$	222,000

Inventories	Beginning of Year	End of Year
Raw materials	$	8,200	$	10,500
Work in process	$	5,200	$	20,600
Finished goods	$	75,000	$	25,400

Required:

1.	Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.

2.	Prepare a schedule of cost of goods sold.

3.	Prepare an income statement.

Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below:

	Quarter

	First	Second	Third	Fourth
Direct materials	$	280,000	$	140,000	$	70,000	$	210,000
Direct labor		120,000		60,000		30,000		90,000
Manufacturing overhead		230,000		206,000		194,000		?

Total manufacturing costs (a)	$	630,000	$	406,000	$	294,000	$	?

Number of units to be produced (b)		80,000		40,000		20,000		60,000
Estimated unit product cost (a b)	$	7.88	$	10.15	$	14.70	$	?

Management finds the variation in quarterly unit product costs to be confusing and difficult to work with. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product.

Required:
1-a.	Using the high-low method, estimate the fixed manufacturing overhead cost per quarter and the variable manufacturing overhead cost per unit.(Round the "Variable manufacturing overhead per unit" to 2 decimal places.)

1-b.	Compute the total manufacturing cost and unit product cost for the fourth quarter.(Round the "Unit product cost" to 2 decimal places.)

3.	Estimate the total manufacturing overhead cost for the year and an annual predetermined overhead rate.(Round the "Predetermined overhead rate" to 2 decimal places.)

White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates:

	Department

	Cutting	Finishing
Direct labor-hours		7,800		74,000
Machine-hours		60,800		3,300
Total fixed manufacturing overhead cost	$	390,000	$	515,000
Variable manufacturing overhead per machine-hour	$	3.00		-
Variable manufacturing overhead per direct labor-hour		-	$	2.75

Required:
1.	Compute the predetermined overhead rate to be used in each department.(Round your answers to 2 decimal places.)

2.	Assume that the overhead rates you computed in (1) above are in effect. The job cost sheet for Job 203, which was started and completed during the year, showed the following:

	Department

	Cutting	Finishing
Direct labor-hours		4		18
Machine-hours		81		4
Materials requisitioned	$	770	$	380
Direct labor cost	$	43	$	160

Compute the total manufacturing cost assigned to Job 203.(Round your intermediate and final answers to 2 decimal places.)

Would you expect substantially different amounts of overhead cost to be charged to some jobs if the company used a plantwide overhead rate based on direct labor-hours instead of using departmental rates?

Yes

The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year.

Manufacturing Overhead

Work in Process

Finished Goods

Cost of Goods Sold

The overhead that had been applied to production during the year is distributed among the ending balances in the accounts as follows:


Work in process, ending	$	36,540
Finished goods, ending		73,080
Cost of goods Sold		296,380

Overhead applied	$	406,000

For example, of the $80,200 ending balance in work in process, $36,540 was overhead that had been applied during the year.

Required:
1.	Identify the reasons for entries (a) through (d).

2.	Assume that the company closes any balance in the manufacturing overhead account directly to cost of goods sold. Prepare the necessary journal entry.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Assume instead that the company allocates any balance in the manufacturing overhead account to the other accounts in proportion to the overhead applied during the year that is in the ending balance in each account. Prepare the necessary journal entry.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)

[The following information applies to the questions displayed below.]

Delph Company uses a job-order costing system and has two manufacturing departmentsMolding and Fabrication. The company provided the following estimates at the beginning of the year:

	Molding	Fabrication	Total
Machine-hours		33,000		43,000	76,000
Fixed manufacturing overhead costs	$	760,000	$	260,000	$ 1,020,000
Variable manufacturing overheadper machine-hour	$	5.80	$	5.80

During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobsJob D-70 and Job C-200. It provided the following information related to those two jobs:

Job D-70:	Molding	Fabrication	Total
Direct materials cost	$	373,000	$	320,000	$	693,000
Direct labor cost	$	240,000	$	170,000	$	410,000
Machine-hours		23,000		10,000		33,000

Job C-200:	Molding	Fabrication	Total
Direct materials cost	$	300,000	$	280,000	$	580,000
Direct labor cost	$	140,000	$	250,000	$	390,000
Machine-hours		10,000		33,000		43,000

Delph had no overapplied or underapplied manufacturing overhead during the year.

7. value: 10.00 points Required information

Assume Delph uses a plantwide overhead rate based on machine-hours.

Required:

1-a.	Compute the predetermined plantwide overhead rate.(Round your answer to 2 decimal places.)

1-b.	Compute the total manufacturing costs assigned to Job D-70 and Job C-200.(Round your intermediate calculations to 2 decimal places.)

1-c.	If Delph establishes bid prices that are 150% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200?(Round your intermediate calculations to 2 decimal places.)

1-d.	What is Delphs cost of goods sold for the year?(Round your intermediate calculations to 2 decimal places.)

Gold Nest Company of Guandong, China, is a family-owned enterprise that makes birdcages for the South China market. The company sells its birdcages through an extensive network of street vendors who receive commissions on their sales. All of the companys transactions with customers, employees, and suppliers are conducted in cash; there is no credit.

The company uses a job-order costing system in which overhead is applied to jobs on the basis of direct labor cost. Its predetermined overhead rate is based on a cost formula that estimated $76,000 of manufacturing overhead for an estimated activity level of $40,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows:


Raw materials	$	10,600
Work in process	$	4,300
Finished goods	$	8,400

During the year, the following transactions were completed:

a.	Raw materials purchased for cash, $163,000.
b.	Raw materials requisitioned for use in production, $142,000 (materials costing $122,000 were charged directly to jobs; the remaining materials were indirect).
c.	Costs for employee services were incurred as follows:


Direct labor	$	177,000
Indirect labor	$	252,500
Sales commissions	$	21,000
Administrative salaries	$	47,000

d.	Rent for the year was $18,900 ($13,600 of this amount related to factory operations, and the remainder related to selling and administrative activities).
e.	Utility costs incurred in the factory, $19,000.
f.	Advertising costs incurred, $12,000.
g.	Depreciation recorded on equipment, $21,000. ($17,000 of this amount was on equipment used in factory operations; the remaining $4,000 was on equipment used in selling and administrative activities.)
h.	Manufacturing overhead cost was applied to jobs, $?
i.	Goods that had cost $229,000 to manufacture according to their job cost sheets were completed.
j.	Sales for the year totaled $503,000. The total cost to manufacture these goods according to their job cost sheets was $218,000.

Required:

1.	Prepare journal entries to record the transactions for the year.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations to 2 decimal places.)

2.	Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these t-accounts (dont forget to enter the beginning balances in your inventory accounts).(Round your intermediate calculations to 2 decimal places.)

3-a.

Is Manufacturing Overhead underapplied or overapplied for the year?

Overapplied

Underapplied

3-b.	Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations to 2 decimal places.)