Question

In: Accounting

Hershey Company uses a job order costing system and applies manufacturing overheads on the basis of...

Hershey Company uses a job order costing system and applies manufacturing overheads on the basis of direct labor cost. Total manufacturing overhead was estimated to be $142,595 for the year; direct labor was estimated to total $150,100.

(1/1) (12/31)
Raw Materials Inventory $ 14,200 $ 9,400
Work in Process Inventory $ 20,000 $ 22,700
Finished Goods Inventory $ 42,500 $ 31,300


The following transactions have occurred during the year.

Raw materials purchases $ 111,000
Direct materials used $ 104,500
Direct labor $ 126,800
Indirect materials used $ 11,300
Indirect labor $ 16,300
Factory equipment depreciation $ 27,100
Factory rent $ 21,700
Factory utilities $ 9,100
Other factory costs $ 6,900

(a) Calculate the predetermined overhead rate.



(b) Calculate cost of goods manufactured.



(c) Calculate the over- or underapplied overhead. (Input the amount as positive value.)



(d) Calculate adjusted cost of goods sold.

Solutions

Expert Solution

All answers are attached below. Please rate my answer

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Hershey Company uses a job order costing system and applies manufacturing overheads on the basis of...
Hershey Company uses a job order costing system and applies manufacturing overheads on the basis of direct labor cost. Total manufacturing overhead was estimated to be $142,595 for the year; direct labor was estimated to total $150,100. (1/1) (12/31) Raw Materials Inventory $ 14,200 $ 9,400 Work in Process Inventory $ 20,000 $ 22,700 Finished Goods Inventory $ 42,500 $ 31,300 The following transactions have occurred during the year. Raw materials purchases $ 111,000 Direct materials used $ 104,500 Direct...
Lotus Company uses a job order cost system and applies overheads to production on the basis...
Lotus Company uses a job order cost system and applies overheads to production on the basis of direct labour costs. In establishing the predetermined overhead rates for 2015, the following estimates were made for the year: Manufacturing Overhead $960,000 Direct Labour Cost $800,000 Machine Hours 30,000 Labour Hours 50,000 During the month of October, the job cost sheet showed the following costs and production data for Job # 458: Direct Materials Used $120,000 Direct Labour Cost $80,000 Direct Labour Hours...
Garcia Manufacturing uses a job order costing system and applies overhead to production on the basis...
Garcia Manufacturing uses a job order costing system and applies overhead to production on the basis of direct labour hours. In 2013, costs and production data were estimated to remain the same as 2012 with total manufacturing overhead costs estimated to be $1,050,000, direct labour costs estimated to be $35 an hour, and direct labour hours to be 20,000. On January 1, 2013, Job No. 50 was the only job in process. The production data incurred prior to January 1...
Garcia Manufacturing uses a job order costing system and applies overhead to production on the basis...
Garcia Manufacturing uses a job order costing system and applies overhead to production on the basis of direct labour hours. In 2013, costs and production data were estimated to remain the same as 2012 with total manufacturing overhead costs estimated to be $1,050,000, direct labour costs estimated to be $35 an hour, and direct labour hours to be 20,000. On January 1, 2013, Job No. 50 was the only job in process. The production data incurred prior to January 1...
The QuickRead Manufacturing Company uses a Job Order Costing System to record production costs. Overheads are...
The QuickRead Manufacturing Company uses a Job Order Costing System to record production costs. Overheads are applied to each job on the basis of direct labour hours. Information pertaining to this company for 2014 is as follows: Estimated Labour Hours 62,000 hours Estimated Factory Overheads $ 310,000 Actual Expenses for December were: Direct Materials Used $ 62,000 Direct Labour Incurred (3,500 hours) $ 33,600 Factory Utilities $ 2,500 Equipment Depreciation $ 3,000 Indirect Labour & Materials $ 6,200 Other overheads...
Ecola Company uses a job order costing system. Manufacturing overhead is applied on the basis of...
Ecola Company uses a job order costing system. Manufacturing overhead is applied on the basis of direct labor cost. Total manufacturing overhead was estimated to be $142,560 for the year; direct labor was estimated to total $162,000. (1/1) (12/31) Raw Materials Inventory $ 13,800 $ 10,800 Work in Process Inventory $ 29,800 $ 22,800 Finished Goods Inventory $ 41,800 $ 32,800 The following transactions have occurred during the year. Raw materials purchases $ 138,000 Direct materials used $ 75,600 Direct...
Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis...
Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.30 per machine-hour was based on a cost formula that estimates $213,900 of total manufacturing overhead for an estimated activity level of 93,000 machine-hours. Required: 1. Assume that during the year the company works only 88,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the amount of overhead...
Job-Order Costing Ace Custom Jewelry Company uses a job-order cost system. The company applies manufacturing overhead...
Job-Order Costing Ace Custom Jewelry Company uses a job-order cost system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor hours. The estimated MOH was $135,000 for the year and the estimated direct labor hours were 15,000 hours. In May, Job #378 was completed. Direct materials totaled $8,500. Total labor costs were $14,000 at $16 per hour. At the end of the year, it was determined that the company worked 16,000 direct labor...
The Collins Company uses a job-order costing system and applies manufacturing overhead cost to jobs on...
The Collins Company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of the cost of materials used in production. At the beginning of the most recent year, the following estimates were made as a basis for computing the predetermined overhead rate for the year: Manufacturing overhead cost: $200,000 Direct materials cost: $160,000 The following transactions took place during the year (all purchases and services were acquired on account): a.) Raw materials purchased: $86,000....
NH Company uses a job-order costing system. The company applies manufacturing overhead to jobs using a...
NH Company uses a job-order costing system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours. Last year, manufacturing overhead and direct labor-hours were estimated at $80,000 and 16,000 hours respectively, for the year. In June, Job #300 was completed. Materials costs on the job totaled $1,500 and labor costs totaled $2,400 at $6 per hour. At the end of the year, it was determined that the company worked 15,000 direct labor-hours for...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT