Part 1

1. Compute the predetermined overhead rate for the year.

Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materialsused in production(noton the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $118,300 of manufacturing overhead for an estimated allocation base of $91,000 direct material dollars to be used in production. The company has provided the following data for the just completed year:

Purchase of raw materials $138,000

Direct labor cost $87,000

Manufacturing overhead costs:

Indirect labor $112,900

Property taxes $8,700

Depreciation of equipment $17,000

Maintenance $13,000

Insurance $10,700

Rent, building $32,000

Beginning Ending

Raw Materials $24,000 $15,000

Work in Process $44,000 $37,000

Finished Goods $72,000 $57,000

question 1 .

Compute the predetermined overhead rate for the year.

Predetermined overhead rate .......%

Required:

1. Compute the predetermined overhead rate for the year.

2. Compute the amount of underapplied or overapplied overhead for the year.

3. Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials.

4. Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer.

5. Assume that the $37,000 ending balance in Work in Process includes $8,700 of direct materials. Given this assumption, supply the information missing below:

2. Compute the amount of underapplied or overapplied overhead for the year.

Weatherhead Inc. has provided the following data for the month of March. There were no beginning Inventories: consequently. the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. 10 cost of Work In Finished Goods Process Goods Sold Total Direct materials $ 4, 240 $14,720 $ 41, 560 $ 60,520 Ints Direct labor 9,800 29,440 83, 840 123, 080 Manufacturing overhead applied 5,830 10,570 34, 980 51, 380 Total $19,870 $54,730 $160, 380 $234,980 Manufacturing overhead for the month was overapplied by $4,800. The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts. The work In process Inventory at the end of March after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to: (Round Intermediate percentage computations to the nearest whole percent.) Multiple Choice O $19,413 O $19.931 O $20.002 O $19,342During March. Pendergraph Corporation Incurred $61,000 of actual Manufacturing Overhead costs. During the same perlod, the Manufacturing Overhead applied to Work In Process was $63,000. 13 The Journal entry to record the application of Manufacturing Overhead to Work In Process would include a: oints Multiple Choice O credit to Manufacturing Overhead of $63,000 O debit to Work in Process of $61,000 O credit to Work in Process of $61,000 O debit to Manufacturing Overhead of $63,000Tyare Corporation had the following Inventory balances at the beginning and end of May; 14 May 1 May 30 Raw materials $35, 500 $50, 600 Finished Goods $85,090 $86, 090 work in Process $23, 500 $18, 040 Ints During May, $68.500 In raw materials (all direct materials) were drawn from Inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 500 hours of direct labor time had been expended on the Jobs In the beginning Work In Process Inventory account. The ending Work In Process Inventory account contained $8,050 of direct materials cost. The Corporation incurred $45,000 of actual manufacturing overhead cost during the month and applied $45.600 in manufacturing overhead cost. The actual direct labor-hours worked during May totaled: Multiple Choice O 3,000 hours O 3.750 hours O 3,800 hours O 5,000 hours15 Acheson Corporation. which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $157, 700 Estimated machine-hours 4, 630 Actual manufacturing overhead $157,300 Actual machine-hours 4, 840 Skipped The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The applied manufacturing overhead for the year is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice O $201,441 O $157.300 O $164,415 O $164.850Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute the amount of underapplied or overapplied overhead for the year. overhead Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials. Gitano Products Schedule of Cost of Goods Manufactured Direct materials: Total raw materials available Raw materials used in production Total manufacturing costs Cost of goods manufacturedComplete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer Unadjusted cost of goods soldComplete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Assume that the $37,000 ending balance in Work in Process includes $8,700 of direct materials. Given this assumption, supply the information missing below: Direct materials Direct labor Manufacturing overhead Work in process inventory S 0\fCrich Corporation uses direct labor-hours In its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 22,000 hours and the total estimated manufacturing overhead was $545,600. At the end 9 of the year, actual direct labor-hours for the year were 21.900 hours and the actual manufacturing overhead for the year was $545.600. Overhead at the end of the year was: (Round your intermediate calculations to 2 decimal places.) Multiple Choice O $2,530 overapplied O $2,530 underapplied O $2.480 underapplied O $2,480 overapplied