Question

In: Accounting

Question 4 (30 marks) PROBLEM 5–26 (Garrison Text) Schedule of Cost of Goods Manufactured; Overhead Analysis...

Question 4

PROBLEM 5–26 (Garrison Text) Schedule of Cost of Goods Manufactured; Overhead Analysis

Calgary Injection Moulding operates a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. In computing an overhead rate for the year, the company’s estimates were as follows: manufacturing overhead cost, $248,000, and machine-hours, 40,000. The company has provided the data in the following table:

                                    Beginning        Ending

Raw Materials             $21,000          $16,000

Work in Process          $44,000          $40,000

Finished Goods           $68,000          $60,000

The following actual costs were incurred during the year:

Purchase of raw materials (all direct) $133,000

Direct labour                                                   $  80,000

Machine-hours                                                    42,000

Manufacturing overhead costs                        $264,000

Required:

1.Compute the predetermined overhead rate for the year.

2. Compute the amount of under applied or over applied overhead for the year. How is over applied (under applied) overhead disposed of at year-end?

3.Prepare a schedule of cost of goods manufactured for the year.

4. Compute the cost of goods sold for the year. (Do not include any under applied or over applied overhead in your cost of goods sold figure.)

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Problem 3-14 Schedule of Cost of Goods Manufactured; Overhead Analysis [LO3-3, LO3-4] Gitano Products operates a...
Problem 3-14 Schedule of Cost of Goods Manufactured; Overhead Analysis [LO3-3, LO3-4] Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $135,000 of manufacturing overhead for an estimated allocation base of $90,000 direct material dollars to be used in production. The company has provided the following data...
Problem 3-14 Schedule of Cost of Goods Manufactured; Overhead Analysis [LO3-3, LO3-4] Gitano Products operates a...
Problem 3-14 Schedule of Cost of Goods Manufactured; Overhead Analysis [LO3-3, LO3-4] Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $123,200 of manufacturing overhead for an estimated allocation base of $88,000 direct material dollars to be used in production. The company has provided the following data...
Problem 3-14 Schedule of Cost of Goods Manufactured; Overhead Analysis [LO3-3, LO3-4] Gitano Products operates a...
Problem 3-14 Schedule of Cost of Goods Manufactured; Overhead Analysis [LO3-3, LO3-4] Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $138,000 of manufacturing overhead for an estimated allocation base of $92,000 direct material dollars to be used in production. The company has provided the following data...
Problem 3-14 Schedule of Cost of Goods Manufactured; Overhead Analysis [LO3-3, LO3-4] Gitano Products operates a...
Problem 3-14 Schedule of Cost of Goods Manufactured; Overhead Analysis [LO3-3, LO3-4] Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $131,600 of manufacturing overhead for an estimated allocation base of $94,000 direct material dollars to be used in production. The company has provided the following data...
PROBLEM 4–30 (Garrison text)   Changes in Cost Structure; Break-Even Analysis; Operating Leverage Duchamp Company’s contribution format...
PROBLEM 4–30 (Garrison text)   Changes in Cost Structure; Break-Even Analysis; Operating Leverage Duchamp Company’s contribution format income statement for the most recent month is given below: Sales (30,000 units)                $ 900,000 Variable expenses                     630,000 Contribution margin                  270,000 Fixed expenses                         180,000 Operating income                     $ 90,000 The industry in which Duchamp Company operates is quite sensitive to cyclical movements in the economy. Thus, profits vary considerably from year to year according to general economic conditions. The company has a large amount of unused capacity and is studying...
Schedule of cost of goods manufactured
Schedule of Cost of Goods Manufactured The company reported the following information for the year: Prepare a schedule of cost of goods manufactured for the year.
Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold...
Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold and Income Statement; this ie the jouranl entries Pre-determined manufacturing overhead rate = Total estimated manufacturing overheads / Estimated direct labor hours = = $3600/12 hours = $300 per direct labor hour Step 2: Cost Sheet Job # 1 Direct materials $ Table top 2000 Legs ($650 x 4) 2600 Drawer 0 4600 Direct labor cost @ $20 per hour (3x2x$30) 180 Manufacturing overheads...
In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the cost of...
In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the cost of goods manufactured is computed according to which of the following equations? Multiple Choice Cost of goods manufactured = Total manufacturing costs + Beginning finished goods inventory – Ending finished goods inventory Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory – Ending work in process inventory Cost of goods manufactured = Total manufacturing costs + Ending work in process...
Preparing a Schedule of Cost of Finished Goods Manufactured, Cost of Goods Sold Schedule, and an...
Preparing a Schedule of Cost of Finished Goods Manufactured, Cost of Goods Sold Schedule, and an Income Statement. Listed below is information related to RRR Co’s manufacturing activities for the month of October 2020. Ending Balance                       Beginning Balance Materials Inventory                                                                 $197,000                                    $ 211,000 Work in Process Inventory                                                       59,000                                         78,000                     Finished Goods Inventory                                                        91,000                                           82,000 During October 2020, RRR Company purchased $105,000 of raw materials and incurred direct labor costs of $77,100. The...
Preparing a Schedule of Cost of Finished Goods Manufactured, Cost of Goods Sold Schedule, and an...
Preparing a Schedule of Cost of Finished Goods Manufactured, Cost of Goods Sold Schedule, and an Income Statement. Listed below is information related to Danbury Co’s manufacturing activities for the month of July 2016. Ending Balance Beginning Balance Materials Inventory $7,500 $ 6,000 Goods in Process Inventory 11,000 2,000 Finished Goods Inventory 10,000 9,000 During July 2016, Danbury Company purchased $20,000 of raw materials and incurred direct labor costs of $14,160. The company applies overhead at a rate of 50%...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT