Question
Problem 2-24A Schedule of Cost of Goods Manufactured; Overhead Analysis [LO1, LO2, LO3, LO6, LO7] The Pacific Manufacturing Company operates a job-order costing system and
Problem 2-24A Schedule of Cost of Goods Manufactured; Overhead Analysis [LO1, LO2, LO3, LO6, LO7]
The Pacific Manufacturing Company operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. Its predetermined overhead rate was based on a cost formula that estimated $117,000 of manufacturing overhead for an estimated allocation base of $90,000 direct labor dollars. The company has provided the following data: |
Inventories | Beginning | Ending | ||
Raw materials | $ | 27,000 | $ | 12,000 |
Work in process | $ | 44,000 | $ | 37,000 |
Finished goods | $ | 72,000 | $ | 56,000 |
The following actual costs were incurred during the year: |
Purchase of raw materials (all direct) | $ | 140,000 |
Direct labor cost | $ | 86,000 |
Actual manufacturing overhead costs: | ||
Insurance, factory | $ | 11,400 |
Depreciation of equipment | $ | 18,000 |
Indirect labor | $ | 28,500 |
Property taxes | $ | 8,800 |
Maintenance | $ | 13,000 |
Rent, building | $ | 36,000 |
Required: | |
1-a. | Compute the predetermined overhead rate for the year. |
Predetermined overhead rate | % |
1-b. | Compute the amount of underapplied or overapplied overhead for the year. (Input the amount as a positive value.) |
(Click to select)OverappliedUnderapplied overhead | $ |
2. | Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials. (Input all amounts as positive values.) |
Pacific Manufacturing Company Schedule of Cost of Goods Manufactured | ||
Direct materials: | ||
(Click to select)Manufacturing overhead applied to work in processWork in process, beginningWork in process, endingRaw materials inventory, endingRaw materials inventory, beginning | $ | |
(Click to select)DeductAdd: (Click to select)Cost of goods manufacturedPurchases of raw materialsWork in process, beginningWork in process, endingRaw materials inventory, ending | ||
Total raw materials available | ||
(Click to select)DeductAdd: (Click to select)Work in process, endingRaw materials inventory, beginningPurchases of raw materialsWork in process, beginningRaw materials inventory, ending | ||
Raw materials used in production | $ | |
(Click to select)Direct laborPurchases of raw materialsWork in process, beginningWork in process, endingRaw materials inventory, ending | ||
(Click to select)Work in process, beginningRaw materials inventory, endingManufacturing overhead applied to work in processPurchases of raw materialsWork in process, ending | ||
Total manufacturing cost | ||
(Click to select)AddDeduct: (Click to select)Work in process, beginningWork in process, endingRaw materials inventory endingRaw materials inventory, beginningPurchases of raw materials | ||
(Click to select)DeductAdd: (Click to select)Raw materials inventory, endingPurchases of raw materialsWork in process, beginningRaw materials inventory, beginningWork in process, ending | ||
Cost of goods manufactured | $ | |
3. | Compute the unadjusted cost of goods sold for the year. (Do not include any underapplied or overapplied overhead in your cost of goods sold figure.) |
Unadjusted cost of goods sold | $ |
4. | Job 137 was started and completed during the year. What price would have been charged to the customer if the job required $3,100 in materials and $4,900 in direct labor cost, and the company priced its jobs at 30% above the jobs cost according to the accounting system? |
Price to customer | $ |
5. | Direct labor made up $8,800 of the $37,000 ending Work in Process inventory balance. Supply the information missing below: |
Direct materials | $ |
Direct labor | 8,800 |
Manufacturing overhead | |
Work in process inventory | $ 37,000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started