Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Overhead Analysis and Preparing Schedules of Cost of Goods using Excel's SUM and Basic Math Functions Stanford Enterprises has provided its manufacturing estimated and actual

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Overhead Analysis and Preparing Schedules of Cost of Goods using Excel's SUM and Basic Math Functions Stanford Enterprises has provided its manufacturing estimated and actual data for the year end. The Controller has asked you to compute the predetermined overhead rate, the schedule of cost of goods manufactured, and the schedule of cost of goods sold. Use the information included in the Excel Simulation and the Excel functions described below to complete the task. . Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell, "=E5" was entered, the formula would output the result from cell E5, or $275,000 in this example. Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: + (plus sign to add). - (minus sign to subtract), " (asterisk sign to multiply), and / (forward slash to divide). From the Excel Simulation below. If in a blank cell =E6+E7" was entered, the formula would add the values from those cells and output the result, or 52,760 in this example. If using the other math symbols the result would output an appropriate answer for its function. SUM function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges to utilize this function. From the Excel Simulation below, if in a blank cell"-SUME10, E11,E12)" was entered, the formula would output the result of adding those three separate cells, or 1,214,050 in this example. Similarly, if in a blank cell "SUM(E10:E12)" was entered the formula would output the same result of adding those cells, except they are expressed as a range in the formula, and the result would be 1.214,050 in this example. G H B D E 1 Stanford Enterprises uses job-order costing. 2 The allocation base for overhead is direct labor hours. 3 4 Data for the year just ended: 5 Estimated total manufacturing overhead cost $ 275,000 6 Estimated total direct labor hours 25,000 7 Actual total direct labor hours 27.760 8 9 Actual costs for the year: 10 Purchase of raw materials (all direct) $375,000 11 Direct labor cost $536,300 12 Manufacturing overhead costs $302.750 13 14 Inventories: Beginning Ending 15 Raw materials (all direct) S 15,000 $ 11,375 16 Work in process $ 27,875 $ 22,350 17 Finished goods S 34,600 $ 26,450 18 19 Use the data to answer the following. 20 21 1. Compute applied overhead and determine the amount of underapplied or overapplied overhead: 22 Actual manufacturing overhead cost $ 302,750 23 Predetermined overhead rate 11 Actual direct labor hours 27,760 Sheet1 24 F25 X fx =e5+6+7 G H . B D E F 21 1. Compute applied overhead and determine the amount of underapplied or overapplied overhead: 22 Actual manufacturing overhead cost $ 302,750 23 Predetermined overhead rate 11 24 Actual direct labor hours 27,760 25 Manufacturing overhead applied =e5e6te7 26 27 Underapplied (overapplied) manufacturing overhead (2610) 28 29 2. Prepare a schedule of cost of goods manufactured: 30 31 Stanford Enterprises 32 Schedule of Cost of Goods Manufactured 33 Direct materials: 34 Raw materials inventory, beginning $ 15.000 35 Add: Purchases of raw materials 375,000 36 Total raw materials available $ 390.000 37 Deduct: Raw materials inventory, ending 11.375 38 Raw materials used in production $ 378,625 39 Direct labor 536,300 40 Manufacturing overhead applied to work in process 305,360 41 Total manufacturing costs $1,220,285 42 Add: Beginning work in process inventory 27,875 $ 1,248,160 44 Deduct: Ending work in process inventory 22.350 Sheet1 43 48 49 Stanford Enterprises 50 Schedule of Cost of Goods Sold 51 52 Finished goods inventory, beginning 53 Add: Cost of goods manufactured 54 Cost of goods available for sale 55 Deduct: Finished goods inventory, ending 56 Unadjusted cost of goods sold 57 Underapplied (overapplied) overhead 58 Adjusted cost of goods sold 34,600 1,225,810 $ 1,260,410 26,450 $ 1,233,960 59 4 Sheet1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Business Ethics An Introduction

Authors: Ken McPhail, Diane Walters

1st Edition

0674018788, 9780415362368

More Books

Students also viewed these Accounting questions

Question

25.0 m C B A 52.0 m 65.0 m

Answered: 1 week ago