Question
In: Accounting
Module 1 Graded Assignment In December 2018, West Corporation’s manager estimated next year’s total direct labor...
Module 1 Graded Assignment In December 2018, West Corporation’s manager estimated next year’s total direct labor cost assuming 10 persons working an average of 2,000 hours each at an average wage rate of $20 per hour. The manager also estimated the following manufacturing overhead costs for 2019. Indirect labor $ 75,000 Factory supervision 100,000 Rent on factory building 50,000 Factory utilities 100,000 Factory insurance 10,000 Depreciation – factory equipment 500,000 Repairs expense – factory equipment 50,000 Factory supplies used 20,000 Miscellaneous production costs 5,000 Total estimated overhead costs $910,000 At the end of 2019, records show that the company incurred $850,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 100, $100,000; Job 101, $80,000; Job 102, $50,000; Job 103, $120,000; Job 104, $40,000. In addition, Job 105 is in process at the end of 2019 and had been charged $25,000 of direct labor. Direct material costs for each of the jobs were as follows: Job 100, $63,000; Job 101, 42,000; Job 102 35,000; Job 103, 78,000; Job 104 39,000; Job 105, 45,000. No jobs were in the process at the beginning of 2019. The company’s predetermined overhead rate is based on direct labor cost. Required 1. Determine the predetermined overhead rate for 2019. 2. Determine the total overhead cost applied to each of the six jobs during 2019. 3. Determine the total cost of each of the six jobs at the end of 2019. 4. Determine the dollar amount that would be transferred from work in process inventory to finished goods inventory and ultimately to cost of goods sold in 2019. 5. Determine the dollar amount that would remain in work in process inventory at the end of 2019. 6. Determine the over-or under-applied overhead at the end of 2019. 7. How would you recommend closing out the over- or under-applied overhead?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
In December 2016, Learer Company’s manager estimated next year’s total direct labor cost assuming 25 persons...
In December 2016, Learer Company’s manager estimated next year’s
total direct labor cost assuming 25 persons working an average of
2,000 hours each at an average wage rate of $40 per hour. The
manager also estimated the following manufacturing overhead costs
for 2017. Indirect labor $ 322,200 Factory supervision 219,000 Rent
on factory building 143,000 Factory utilities 91,000 Factory
insurance expired 71,000 Depreciation—Factory equipment 380,000
Repairs expense—Factory equipment 63,000 Factory supplies used
71,800 Miscellaneous production costs 39,000 Total estimated
overhead...
In December 2016, Learer Company’s manager estimated next year’s total direct labor cost assuming 30 persons...
In December 2016, Learer Company’s manager estimated next year’s
total direct labor cost assuming 30 persons working an average of
2,000 hours each at an average wage rate of $30 per hour. The
manager also estimated the following manufacturing overhead costs
for 2017.
Indirect
labor
$228,200
Factory
supervision
136,000
Rent on factory
building
149,000
Factory
utilities
97,000
Factory
insurance expired
77,000
Depreciation—Factory equipment
201,000
Repairs
expense—Factory equipment
69,000
Factory supplies
used
77,800
Miscellaneous
production costs
45,000
Total estimated
overhead costs...
In December 2016, Learer Company’s manager estimated next year’s total direct labor cost assuming 35 persons...
In December 2016, Learer Company’s manager estimated next year’s
total direct labor cost assuming 35 persons working an average of
3,000 hours each at an average wage rate of $20 per hour. The
manager also estimated the following manufacturing overhead costs
for 2017.
Indirect labor
$335,200
Factory supervision
165,000
Rent on factory building
156,000
Factory utilities
104,000
Factory insurance expired
84,000
Depreciation—Factory
equipment
413,000
Repairs expense—Factory
equipment
76,000
Factory supplies used
84,800
Miscellaneous production
costs
52,000
Total estimated overhead
costs...
In December 2016, Learer Company’s manager estimated next year’s total direct labor cost assuming 45 persons...
In December 2016,
Learer Company’s manager estimated next year’s total direct labor
cost assuming 45 persons working an average of 2,000 hours each at
an average wage rate of $25 per hour. The manager also estimated
the following manufacturing overhead costs for 2017.
Indirect
labor
$
325,200
Factory
supervision
233,000
Rent on factory
building
146,000
Factory
utilities
94,000
Factory
insurance expired
74,000
Depreciation—Factory equipment
520,000
Repairs
expense—Factory equipment
66,000
Factory supplies
used
74,800
Miscellaneous
production costs
42,000
Total estimated
overhead...
In December 2010, Gomez Company’s manager estimated next year’s total direct labor cost assuming 50 persons...
In December 2010, Gomez Company’s manager estimated next year’s
total direct labor cost assuming 50 persons working an average of
2,020 hours each at an average wage rate of $15 per hour. The
manager also estimated the following manufacturing overhead costs
for year 2011.
Indirect labor
$
167,650
Factory
supervision
123,000
Rent on factory
building
76,000
Factory
utilities
46,000
Factory insurance
expired
35,100
Depreciation—Factory
equipment
249,000
Repairs
expense—Factory equipment
31,500
Factory supplies
used
34,400
Miscellaneous
production costs
10,000...
In December 2016, Learer Company’s manager estimated next year’s total direct labor cost assuming 40 persons...
In December 2016, Learer Company’s manager estimated next year’s
total direct labor cost assuming 40 persons working an average of
2,000 hours each at an average wage rate of $30 per hour. The
manager also estimated the following manufacturing overhead costs
for 2017.
Indirect labor $ 340,200 Factory supervision 110,000 Rent on
factory building 101,000 Factory utilities 107,000 Factory
insurance expired 87,000 Depreciation—Factory equipment 473,000
Repairs expense—Factory equipment 79,000 Factory supplies used
87,800 Miscellaneous production costs 55,000 Total estimated
overhead...
At the beginning of the year, Learer Company’s manager estimated total direct labor cost assuming 45...
At the beginning of the year, Learer Company’s manager estimated
total direct labor cost assuming 45 persons working an average of
2,500 hours each at an average wage rate of $20 per hour. The
manager also estimated the following manufacturing overhead costs
for the year.
Indirect labor
$
330,200
Factory supervision
109,000
Rent on factory building
151,000
Factory utilities
99,000
Factory insurance expired
79,000
Depreciation—Factory equipment
384,000
Repairs expense—Factory equipment
71,000
Factory supplies used
79,800
Miscellaneous production costs
47,000
Total...
At the beginning of the year, Learer Company’s manager estimated total direct labor cost assuming 45...
At the beginning of the year, Learer Company’s manager estimated
total direct labor cost assuming 45 persons working an average of
2,000 hours each at an average wage rate of $25 per hour. The
manager also estimated the following manufacturing overhead costs
for the year.
Indirect labor
$
325,200
Factory supervision
233,000
Rent on factory building
146,000
Factory utilities
94,000
Factory insurance expired
74,000
Depreciation—Factory equipment
520,000
Repairs expense—Factory equipment
66,000
Factory supplies used
74,800
Miscellaneous production costs
42,000
Total...
Following is information from Kaitlyn Company for the year ended December 31, 2018. Direct labor $...
Following is information from Kaitlyn Company for the year ended
December 31, 2018.
Direct labor $ 90,000
Operating and administrative expenses (costs) of sales ????
Net sales $ 520,000
Initial Inventories (None)
Direct Material Inventory-December 31, 2018 $ 55,000
Inventory of Work in process-December 31, 2018 $ 30,000
Inventory of finished goods- December 31, 2018 $ 4,000
Purchase of direct material ???
Direct material used $ 53,000
Indirect manufacturing costs ???
Total manufacturing costs incurred (in this period) ???
Cost...
1) In November 2017, a cost accountant estimates next year’s total manufacturing overhead at $790,000. She...
1) In November 2017, a cost accountant estimates next
year’s total manufacturing overhead at $790,000. She is
experimenting with 3 possible bases or denominators to calculate
the overhead rate. The three possible overhead bases for 2018 are:
27,000 direct labor hours, $505,000 direct labor dollars, and 3,800
machine hours.
At the end of the year, the actual amounts were: $810,000 overhead,
28,000 direct labor hours, $515,000 direct labor cost, and 4,000
machine
hours.
Required: a) calculate the three overhead
rates. ...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Convert the following numbers as indicated. Use as few digits in the results as necessary or...
- Java program to implement the merge sort your own and test it to sort a list...
- CODE IN C++ PLEASE Write a program to implement the algorithm that you designed in Exercise...
- Show your work please What is the discount yield, bond equivalent yield, and effective annual return...
- Case 7 of the textbook examines the rise of Wal-Mart as a corporate bohemoth. One of...
- The type of listening that involves trying to understand a situation from the speaker’s perspective is...
- Based on the loanable funds theory, explain how each of the following changes should impact interest...
ADVERTISEMENT