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The Pacific Manufacturing Company operates a job-order costing system and applies ov cost to jobs on the basis of direct labor cost. Its predetermined overhead
The Pacific Manufacturing Company operates a job-order costing system and applies ov cost to jobs on the basis of direct labor cost. Its predetermined overhead rate was based on ac formula that estimated $157,250 of manfacturing overhead for an $92,500 Excel worksheet: erhead ost estimated allocatiorn base of direct labor dollars. The company has provided the following data in the form of an Beginning Ending 2 Raw Materials 3 Work in Process 4 Finished Gcods $21,000 $16,000 $44,000 $40,000 $88,000 $80,000 6 The following actual costs were incurred during the year 7 Purchase of raw materials (all direct) 8 Direct labor cost 9 Wanufacturing overhead costs 10 Insurance, factory 11i Depreciation of equipment $133,000 S80,000 $7,000 $18,000 $42,000 $9,000 $11,000 $36,000 12 Indrect labor 13 Property taxes 14. Maintenance 15 Rent, building 16 1 17 Required: 1. a. Compute the predetermined overhead rate for the year. 2. 3. b. Compute the amount of underapplied or overapplied overhead for the year Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials. 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.) Job 137 was started and completed during the year. What price would have been charged to the customer if the job required $3,200 in materials and $4,200 in direct labor cst, and the company priced its jobs at 40% above the job's cost according to the accounting system? 4. 5. Direct labor made up 58,000 of the $40,000 ending Work in Process inventory balance. Sup ply the information missing below: mennwanlisn7, s r.. Direct materials Direct labor.8,000 Manufacturing overhead... . Work in process inventory $40,000
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