Question

Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $50,300 and its total manufacturing overhead cost to be $90,540.

Several incomplete general ledger accounts showing the transactions that occurred during the most recent accounting period follow:

           

Required:
1.	Calculate the predetermined overhead rate.

  

             

2.	Fill in the missing values in the T-accounts.

Raw Materials Inventory Work in Process Inventory Beginning Balance 14,400 Beginning Balance 28,400 Purchases 94,500 Direct Materials 68,300 Ending Balance 28,700 Direct Labor $40,400 Applied Overhead Ending Balance 18,500 Finished Goods Inventory Cost of Goods Sold Beginning Balance 40,500 Unadjusted Cost of Goods Sold Cost of Goods Completed Adjusted Cost of Goods Sold Ending Balance 49,000 Sales Revenue Manufacturing Overhead 301,000 Indirect Materials 11,900 Applied Overhead Indirect Labor 13,600 Factory Depreciation 12,500 Factory Rent 6,300 Factory Utilities 1,700 Other Factory Costs 9,900 Actual Overhead 55,900 Selling, General, and Administrative Expenses Adm. Salaries 27,700 Office Depreciation 18,600 Advertising 13,500 Ending Balance 59,800

  

3.

	Manufacturing Overhead Overapplied by

DOBSON MANUFACTURING COMPANY
Cost of Goods Manufactured Report and Sold
Direct Materials Used in Production
Total Current Manufacturing Costs	$0
Total Work in Process	$0
Cost of Goods Manufactured
Cost of Goods Available for Sale	$0
Unadjusted Cost of Goods Sold
Adjusted Cost of Goods Sold

	DOBSON MANUFACTURING COMPANY Income Statement Net Income from Operations

Answer 1