Question
Manufacturing overhead costs incurred: Indirect materials $15,000 Indirect labor 130,000 Property taxes, factory 8,000 Utilities, factory 70,000 Depreciation, factory 240,000 Insurance, factory 10,000 Total actual
Manufacturing overhead costs incurred:
Indirect materials $15,000
Indirect labor 130,000
Property taxes, factory 8,000
Utilities, factory 70,000
Depreciation, factory 240,000
Insurance, factory 10,000
Total actual manufacturing overhead costs incurred $473,000
Other costs incurred:
Purchases of raw materials (both direct and indirect) $400,000
Direct labor cost $60,000
Inventories:
Raw materials, beginning $20,000
Raw materials, ending $30,000
Work in process, beginning $20,000
Work in process, ending $70,000
The company uses a predetermined overhead rate of $25 per machine-hour to apply overhead cost to jobs. A total of 19,400 machine-hours were used during the year.
| 1. | Actual manufacturing overhead costs (a).... |
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| Manufacturing overhead cost applied: 19,400 MH $25 per MH (b).................. |
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| Overapplied overhead cost (a) (b)........... |
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| 2. | Direct materials: |
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| Beginning raw materials inventory........... |
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| Add: purchases of raw materials.............. |
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| Total raw materials available................... |
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| Deduct: Ending raw materials inventory... |
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| Raw materials used in production............ |
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| Less indirect materials............................. |
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| Direct labor................................................ |
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| Manufacturing overhead applied to work in process.................................................... |
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| Total manufacturing costs.......................... |
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| Add: Beginning work in process inventory.. |
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| Deduct: Ending work in process inventory.. |
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| Cost of goods manufactured....................... |
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
9th Canadian Edition, Volume 2
470964731, 978-0470964736, 978-0470161012
