1 answer

Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis...

Question:

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 $119,000 of manufacturing overhead for an estimated allocation base of $85,000 direct material dollars to be used in production. The company has provided the following data for the just completed year:

Purchase of raw materials $ 134,000
Direct labor cost $ 81,000
Manufacturing overhead costs:
Indirect labor $ 129,500
Property taxes $ 8,700
Depreciation of equipment $ 19,000
Maintenance $ 15,000
Insurance $ 11,100
Rent, building $ 32,000
Beginning Ending
Raw Materials $ 30,000 $ 13,000
Work in Process $ 48,000 $ 38,000
Finished Goods $ 68,000 $ 56,000

Required:

1. Compute the predetermined overhead rate for the year.

2. Compute the amount of underapplied or overapplied overhead for the year.

3. Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials.

4. Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer.

5. Assume that the $38,000 ending balance in Work in Process includes $8,200 of direct materials. Given this assumption, supply the information missing below:


Answers

1) predetermined overhead rate
Estimated manufacturing overhead/direct materials used
119000/85000
140.00% answer
Direct materials used
Beginning raw materials 30,000
Add purchase of raw materials 134,000
Raw materials available for use 164,000
less ending raw materials 13,000
Direct materials used 151,000
Applied overhead 151000*140%= 211400
Actual manufacturing overhead
Indirect labor 129,500
property taxes 8,700
Depreciation of Equipment 19,000
Maintenance 15,000
Insurance 11,100
Rent,building 32,000
total actual manufacturing overhead 215,300 215,300
2) overhead under applied 3,900 answer
3) Cost of goods manufactured
Direct materials used
Beginning raw materials 30,000
Add purchase of raw materials 134,000
Raw materials available for use 164,000
less ending raw materials 13,000
Direct materials used 151,000
Add: Direct labor 81,000
applied manufacturing overhead 211400
total manufacturing cost 443,400
Add:Beginning work in process 48,000
491,400
less Ending work in process 38,000
Cost of goods manufactured for the year 453,400 answer
4) Cost of goods sold
beginning finished goods inventory 68,000
Add cost of goods manufactured for the year 453,400
cost of goods available for used 521,400
less ending finished goods inventory 56,000
unadjusted cost of goods sold 465,400 answer
5) Direct materials 8,200
Direct labor 18,320
manufacturing overhead (140% 0f DM) 11480
Work in process inventory 38,000
.

Similar Solved Questions

1 answer
Review The spool has a mass of 50 kg and a radius of gyration ko =...
Review The spool has a mass of 50 kg and a radius of gyration ko = 0.270 m (Figure 1) Part A If the 23-kg block A is released from rest, determine the velocity of the block when it descends 0.6 m Express your answer to three significant figures and include the appropriate units. μΑ ? VA= Va...
1 answer
7. + 0/1.25 points | Previous Answers SerPSET9 5.P.071 My Notes The system shown in the...
7. + 0/1.25 points | Previous Answers SerPSET9 5.P.071 My Notes The system shown in the figure below has an acceleration of magnitude 1.49 m/s2, where m3.70 kg and m7.60 kg Assume that the coefficient of kinetic friction between block and incline is the same for both inclines. m2 35.0。 35.0&d...
1 answer
Tne Hoss. A ssume ha dliag omls cans or pre ssine Sofce Determine Capproneler tha farce...
tne Hoss. A ssume ha dliag omls cans or pre ssine Sofce Determine Capproneler tha farce cach nembar of agenals can suppart eithar a tensile. ek com modifej beam, AB, and consider tma Pin at A Solne usn s并仔ness 3ET/L lo k 20 2oP 2o fi...
1 answer
Suppose that the point (x, y) is in the indicated quadrant. Decide whether the given ratio...
Suppose that the point (x, y) is in the indicated quadrant. Decide whether the given ratio is positive or negative. Recall that r= 1x?+y +y? IV, Choose whether the given ratio is positive or negative. Negative Positive...
1 answer
AN CT4-2 The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements...
AN CT4-2 The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of VF Corporation are presented in Appendix C. Instructions (a) Identify two accounts on Columbia's balance sheet that provide evidence that Colum- bia uses accrual accounting. In e...
1 answer
What is the specific enthalpy of WATER at a pressure of 1 bar and a temperature...
What is the specific enthalpy of WATER at a pressure of 1 bar and a temperature of 25 oC? Express your numerical answer in kJ/kg with 2 decimal places...
1 answer
Which complex is more stable to acid, [Ni(en)3](BF4)2 or [Ni(macrocycle)](BF4)2? Suggest a reason.
Which complex is more stable to acid, [Ni(en)3](BF4)2 or [Ni(macrocycle)](BF4)2? Suggest a reason....
1 answer
4. Delta Merchandising, Inc., has provided the following information for the year jus Net Sales $128,500...
4. Delta Merchandising, Inc., has provided the following information for the year jus Net Sales $128,500 Beginning Inventory $24,000 Purchases $80,000 Gross Margin $38,550 What was the ending inventory for the company at year-end? $65,450 $24,500 $14,050 $9,950 5. What does the term "relevant ra...
1 answer
+ ③ The resestivity of copper is 167x10r.m. What current flows through a 2.0m Long copper...
+ ③ The resestivity of copper is 167x10r.m. What current flows through a 2.0m Long copper conductor of 1.0x104m² cross section when doris 2 applied?...
1 answer
Net Present Value (NPV) is involved with a. Cash flows not accounting income b. Both cash...
Net Present Value (NPV) is involved with a. Cash flows not accounting income b. Both cash flows and accounting income c. Neither cash flows nor accounting income d. Accounting income not cash flows...
1 answer
For this question, select all the correct answers, the following (is)are forms of telehealth. A. Telepresence...
For this question, select all the correct answers, the following (is)are forms of telehealth. A. Telepresence B. Teleradiology C. Television D. Remote Intensive Care E. Telepsychiatry F. Telephone G. Telepresence H. Remote interpretation...
1 answer
Provide a brief 1 page response to the following question: Predict the future of family-based services...
Provide a brief 1 page response to the following question: Predict the future of family-based services in the U.S. Will there be more of an emphasis on family preservation or child placement?...
1 answer
I just need help with B2: questions: 1 and 2. it looks like a lot because...
i just need help with B2: questions: 1 and 2. it looks like a lot because Question B referenced A1 which is all those reactions above. Al. Lessorn Below are examples of fundamental types of reactions that involve organometallic complexes. 1. Addition: a. olefin b. CO c. phosphine 2. Dissociation a. ...
1 answer
An airplane of mass 10,000 kg is flying over level ground at a constant altitude of...
An airplane of mass 10,000 kg is flying over level ground at a constant altitude of 4.30 km with a constant velocity of 165 m/s west. Its direction is currently straight toward the top of a mountain. At a particular instant, a house is directly below the plane at ground level. (a) At this instant, w...
1 answer
A company operates an assembly line. The company believes that there is a 3% probability that...
A company operates an assembly line. The company believes that there is a 3% probability that any given item produced on the line will contain a defect. If 100 items are pulled at random from the line, what is the probability there will be exactly 4 defective items? If 100 items are pulled at random...
1 answer
Hot answere A 3-phase, 10kvA, 400 Vrms (line-to-line), 50 Hz synchronous gené rator has negligible stator...
hot answere A 3-phase, 10kvA, 400 Vrms (line-to-line), 50 Hz synchronous gené rator has negligible stator Winding resistane and and a synchronous inductance of 10mit per phase. Determine the power angle and the excitation voltage requined to achieve a unity power bactor. Hot answered ERVICES ...
1 answer
Keller Construction is considering two new investments. Project E calls for the purchase of earthmoving equipment....
Keller Construction is considering two new investments. Project E calls for the purchase of earthmoving equipment. Project H represents an investment in a hydraulic lift. Keller wishes to use a net present value profile in comparing the projects. The investment and cash flow patterns are as follows:...
1 answer
True about kinetic molecular theory? a) The volume of the gas particles is negligible compared to the average distance between any two particles. b) Pressure is due to the collisions of the gas particles with the walls of the container?
True about kinetic molecular theory? a) The volume of the gas particles is negligible compared to the average distance between any two particles. b) Pressure is due to the collisions of the gas particles with the walls of the container?...