Question 1 Not complete Marked out of 21.00 Statement of Cost of Goods Manufactured and Income Statement Information from the records of the Bridgeview Manufacturing Company for August 2017 follows: Sales $317,000 Selling and administrative expenses 127,500 Purchases of raw materials 47.000 Direct labor 30,000 Manufacturing overhead 57.500 Inventories August 1 August 31 Raw materials $10,000 $5,000 Work-in-process 16,000 11,000 Finished goods 15,000 21,000 Required Prepare a statement of cost of goods manufactured and an income statement for August 2017. Do not use negative signs with any of your answers below. Bridgeview Manufacturing Company Statement of Cost of Goods Manufactured For the Month Ending August 31, 2017 Current manufacturing costs: Cost of materials placed in production Raw materials, 8/1/17 Purchases Total available Raw materials, 8/31/17 Direct labor Manufacturing overhead Work-in-process, 8/1/17 Total costs in process Work-in-process, B/31/17 Cost of goods manufactured Bridgeview Manufacturing Company Income Statement For the Month Ending August 31, 2017 Sales Cost of goods sold Finished goods inventory, 8/1/17 Cost of goods manufactured Total goods available for sale Finished goods inventory, 8/31/17 Gross profit Selling and administrative expenses Net income Question 2 Not complete Marked out of 5.00 Developing and using a Predetermined Overhead Rate: High-Low Cost Estimation por years, Mattoon Components Company has used an actual plainwide overhead rate and based its prices on Cost plus a markup of tad rate and based its prices on cost plus a markup of 30 percent. Recently the marketing pe Manager, Holly Adams, and the production manager. Sue Walsh confronted the m with a common problem. The marketing manager expressed ons prices seem to vary widely throughout the year. According to Adams seminational charg er prices when business is bad and lower prices we iness is good. While we get a lot of business during high-volume months because share less than competitors, is a waste of time to even calon aste of time to even call on customers during low volume months because we are raising price me months because we are raising prices while our competitors are lowering them was also beloved that it was "folly to be so pushed that we have to pay overtime some months and then Lay employees off in others. She commented, "While there are natural variations in customer demand, the accounting system seems to amply variation." w b) Assume that the Mattoon Components Company had the following total manufacturing overhead costs and direct labor hours in 2016 and 2017: 2016 2017 Total manufacturing overhead 1205.000 25000 Direct labor hours 20.000 28.000 Use the high-low method to develop a cost estimating equation for total manufacturing overhead Total costs $ (c.) Develop a predetermined rate for 2018, assuming 25.000 direct labor hours are budgeted for 2018 Round answers to two decimal places per direct labor hour d.) Assume that the actual level of activity in 2018 was 30,000 direct labor hours and that the total 2018 manufacturing overhead was $250,000. Determine the underapplied or overapplied manufacturing overhead at the end of 2018 Do not use a negative sign with your
