1. | Compute the amount of underapplied or overapplied overhead cost for the year. (Input the amount as a positive value. 2. Prepare a schedule of cost of goods manufactured for the year. (Input all amounts as positive values.) 4. Selected T-accounts for Rolm Company are given below for the just completed year: ![]()
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1. | What was the cost of raw materials put into production during the year? | 2. | How much of the materials in (1) above consisted of indirect materials? | 3. | How much of the factory labor cost for the year consisted of indirect labor? | 4. | What was the cost of goods manufactured for the year? | 5. | What was the cost of goods sold for the year (before considering underapplied or overapplied overhead)? | 6. | If overhead is applied to production on the basis of direct materials cost, what predetermined rate was in effect during the year? (Round your answer to 2 decimal places.) | 7. | Was manufacturing overhead underapplied or overapplied? By how much? (Input the amount as a positive value.) | 8. | Compute the ending balance in the Work in Process inventory account. Assume that this balance consists entirely of goods started during the year. If $32,600 of this balance is direct materials cost, how much of it is direct labor cost? Manufacturing overhead cost? (Round your predetermined overhead rate percentage and final answers to 2 decimal places.) |
Ending balance in the work in process $ Direct labor cost $ Manufacturing overhead cost $ 6.
Job 218 was one of the many jobs started and completed during the year. The job required $3,400 in direct materials and 500 hours of direct labor time at a rate of $12 per hour. If the job contained 540 units and the company billed at 75% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer? 5. Southworth Company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of the cost of direct materials used in production. Its predetermined overhead rate was based on a cost formula that estimated $235,500 of manufacturing overhead for an estimated allocation base of $157,000 direct material dollars. The following transactions took place during the year (all purchases and services were acquired on account): a. | Raw materials purchased, $152,000. | b. | Raw materials requisitioned for use in production (all direct materials), $145,000. | c. | Utility bills incurred in the factory, $24,000. | d. | Costs for salaries and wages were incurred as follows: |
Direct labor | $ | 218,000 | Indirect labor | $ | 79,300 | Selling and administrative salaries | $ | 143,000 |
e. | Maintenance costs incurred in the factory, $16,000. | f. | Advertising costs incurred, $120,000. | g. | Depreciation recorded for the year, $50,000 (70% relates to factory assets, and the remainder relates to selling and administrative assets). | h. | Rental cost incurred on buildings, $85,000 (80% of the space is occupied by the factory, and 20% is occupied by sales and administration). | i. | Miscellaneous selling and administrative costs incurred, $14,000. | j. | Manufacturing overhead cost was applied to jobs, $ ? | k. | Cost of goods manufactured for the year, $551,000. | l. | Sales for the year (all on account) totaled $1,200,000. These goods cost $530,000 according to their job cost sheets. |
The balances in the inventory accounts at the beginning of the year were as follows: Raw Materials 23000 | $ | Work in Process 22000 | $ | Finished Goods $32000 1. Prepare Journal Entries to record A-L 2. | Post your entries to T-accounts. (Don’t forget to enter the opening inventory balances above.) Determine the ending balances in the inventory accounts and in the Manufacturing Overhead account. (Record the transactions in the given order.) 3. | Prepare a schedule of cost of goods manufactured. (Input all amounts as positive values.) |
4. | Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. Prepare a schedule of cost of goods sold 5. Prepare Income Statement for the Year |
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accountguru
12 years ago
costing__job_costing_27_jan.docx
