Show complete solution. For numbers 1,2,5

A. The following data from the just completed year are taken from the accounting records of Mason Company:

Sales $ 524,000

Direct labor cost $ 70,000

Raw material purchases $ 118,000

Selling expenses $ 140,000

Administrative expenses $ 63,000

Manufacturing overhead applied to work in process $ 90,000

Actual manufacturing overhead costs $ 80,000

Inventories Beginning Ending

Raw materials $ 7,000 $ 15,000

Work in process $ 10,000 $ 5,000

Finished goods $ 20,000 $ 35,000

Complete the following...

1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.

2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

3. Prepare an income statement.

B. Yancey Productions is a film studio that uses a job-order costing system. The company's direct materials consist of items such as costumes and props. Its direct labor includes each film's actors, directors, and extras. The company's overhead costs include items such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its overhead cost to films based on direct labor-dollars.

At the beginning of the year, Yancey made the following estimates:

Direct labor-dollars to support all productions $8,000,000

Fixed overhead cost $4,800,000

Variable overhead cost per direct labor-dollar $0.05

Complete the following:

1. Compute the predetermined overhead rate.

During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs:

Direct materials $ 1,259,000

Direct labor cost $ 2,400,000

For number 2, compute the following:

2.

Direct materials=_______

Direct labor=_________

Overhead applied=_____________

Total job cost=____________

C. Wilmington Company has two manufacturing departmentsAssembly and Fabrication. It considers all of its manufacturing overhead costs to be fixed costs. The first set of data that is shown below is based on estimates from the beginning of the year. The second set of data relates to one particular job completed during the yearJob Bravo.

Estimated Data Assembly Fabrication Total

Manufacturing overhead costs $ 600,000 $ 800,000 $ 1,400,000

Direct labor-hours 50,000 30,000 80,000

Machine-hours 20,000 100,000 120,000

Job Bravo Assembly Fabrication Total

Direct labor-hours 11 3 14

Machine-hours 3 6 9

Required:

1. If Wilmington used a plantwide predetermined overhead rate based on direct labor-hours, how much manufacturing overhead would be applied to Job Bravo?

2. If Wilmington uses departmental predetermined overhead rates with direct labor-hours as the allocation base in Assembly and machine-hours as the allocation base in Fabrication, how much manufacturing overhead would be applied to Job Bravo?

For number two, place answers on the blanks provided:

I. Plantwide manufacturing overhead applied to Job Bravo=____________

II. Manufacturing overhead applied from Assembly to Job Bravo=____________

III. Manufacturing overhead applied from Fabrication to Job Bravo=____________

IV. Total departmental manufacturing overhead applied to Job Bravo=_____________