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 iRequired 1 Required 2 Required 3 Required 4 Required 5 Prepare a schedule of cost of goods manufactured for the year. AssumeRequired 1 Required 2 Required 3 Required 4 Required 5 Assume that the $37,000 ending balance in Work in Process includes $8,

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 $100,800 of manufacturing overhead for an estimated allocation base of $84,000 direct material dollars to be used in production. The company has provided the following data for the just completed year: $ 132,000 $ 80,000 Purchase of raw materials Direct labor cost Manufacturing overhead costs: Indirect labor Property taxes Depreciation of equipment Maintenance Insurance Rent, building $ $ $ $ $ $ 91,000 8,000 18,000 12,000 7,600 37,000 Raw Materials Work in Process Finished Goods Beginning Ending $ 26,000 $ 17,000 $ 49,000 $ 37,000 $ 71,000 $ 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 $37,000 ending balance in Work in Process includes $8,800 of direct materials. Given this assumption, supply the information missing below:
Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials. Gitano Products Schedule of Cost of Goods Manufactured Direct materials: Total raw materials available Raw materials used in production Total manufacturing costs Cost of goods manufactured < Required 2 Required 4 >
Required 1 Required 2 Required 3 Required 4 Required 5 Assume that the $37,000 ending balance in Work in Process includes $8,800 of direct materials. Given this assumption, supply the information missing below: Direct materials Direct labor Manufacturing overhead Work in process inventory < Required 4 Required 5 )

Answers

1) Predetermine overhead rate = 100800/84000 = 120% of direct material used

2) Overhead applied = (26000+132000-17000)*1.2 = 169200

Actual overhead = 173600

Under applied overhead = 173600-169200 = 4400

3) Schedule of cost of goods manufactured

Direct material
Beginning raw material 26000
Raw material purchase 132000
Raw material available for use 158000
Less; Ending raw material -17000
Material used 141000
Direct labor 80000
Manufacturing overhead 169200
Total manufacturing cost 390200
Beginning work in process 49000
Total cost of work in process 439200
Less: Ending work in process -37000
Cost of goods manufactured 402200

4) Unadjusted cost of goods sold = 71000+402200-56000 = 417200

5) Calculate following

Direct material 8800
Direct labor 17640
Manufacturing overhead (8800*1.2) 10560
Ending work in process 37000
.

Similar Solved Questions

1 answer
Math 311 Final. Version A, Page 6 of 9 December 17, 2018 5、Let X and Y...
Math 311 Final. Version A, Page 6 of 9 December 17, 2018 5、Let X and Y be discrete random variables withjoint probability mass function given by the following table: 11 2 0 X 2 3 1 .1 3 01 1 (a) Give the marginal probability mass functions of X and y. endent? Justify your answer. (No credit w...
1 answer
Please answer this question according to the instruction, Thank you so much! 6. (16 pt) Use...
Please answer this question according to the instruction, Thank you so much! 6. (16 pt) Use arrow pushing to provide a reasonable mechanism for the following transformation. Use resonance structures OCH3 CH3OH/HCI(cat) ??...
1 answer
4. 19. Bricks' weights are independently distributed as a normal distribution with mean of 110 and...
4. 19. Bricks' weights are independently distributed as a normal distribution with mean of 110 and standard deviation of 2.5. If a total of n= 20 bricks is calculated, what is the probability that the total weight of those 20 randomly selected bricks is greater than 2220? (on calculator take upp...
1 answer
Classical Mechanic 4 A particle mi momentum Pi collides elastically with particle m momentum Pai going...
Classical Mechanic 4 A particle mi momentum Pi collides elastically with particle m momentum Pai going in opposite direction. if m leaves the collision at an angle θί with its original course find its final momentum pr....
1 answer
As the Arctic warms and winters become shorter, hibernation patterns of archic mammals are expected to...
As the Arctic warms and winters become shorter, hibernation patterns of archic mammals are expected to change Sheriff ot al (2011) nvestigated emergence dates from hibernation of arctic ground squirrels at sites in the Brooks Range of northern Alaska The measurements shown in the following tigure ar...
1 answer
Why do you think GAAP requires consolidation when a company acquires 50% or more of the...
Why do you think GAAP requires consolidation when a company acquires 50% or more of the voting stock of another company?...
1 answer
Problem 1. [12 pts. Assume that you have purchased a call option with a strike price...
Problem 1. [12 pts. Assume that you have purchased a call option with a strike price of S66.0. The option will expire in exactly 6 months' time. When you originally bought the option, you paid S5.0. (Show vour calculations) a. b. Draw a payoff diagram showing the payoff at expiration as a functi...
1 answer
I cannot figure out what formulas to use for the different parts. 27) A 5050-pF capacitor...
I cannot figure out what formulas to use for the different parts. 27) A 5050-pF capacitor is charged to 100 V and then quickly connected to a 90.2 mH inductor. a. What is the maximum energy stored in the capacitor? b. What is the maximum energy stored in the magnetic field of the inductor? (U=L I...
1 answer
Top Company holds 90 percent of Bottom Company’s common stock. In the current year, Top reports...
Top Company holds 90 percent of Bottom Company’s common stock. In the current year, Top reports sales of $1,000,000 and cost of goods sold of $800,000. For this same period, Bottom has sales of $500,000 and cost of goods sold of $300,000. During the current year, Top sold merchandise to Bottom...
2 answers
If 245 milliamps were passed through a solution containing lead(ll) ions for 1800 seconds, with (1pts)...
If 245 milliamps were passed through a solution containing lead(ll) ions for 1800 seconds, with (1pts) lead strips seving as electrodes, how many grams of lead would be deposited? 0.474 0.494 0.419 D 0.149...
1 answer
Serena's gross monthly income is $3,500. Her federal, state, and city taxes amount to $1,000 and...
Serena's gross monthly income is $3,500. Her federal, state, and city taxes amount to $1,000 and a monthly IRA contribution of $300 are deducted from her monthly pay. What is the maximum amount Serena should spend on credit card payments? Select one: O a $360 b. $440 oc. $560 O d. $640 e. $760...
1 answer
How do you solve #10/(k-8) = 5/8#?
How do you solve #10/(k-8) = 5/8#?...
1 answer
The preparations of two aqueous solutions are described in the table below. For each solution, write...
The preparations of two aqueous solutions are described in the table below. For each solution, write the chemical formulas of the major species present at equilibrium. You can leave out water itself. Write the chemical formulas of the species that will act as acids in the 'acids' row, the fo...
1 answer
22) Which of the following would not increase the supply curve of loanable funds? A) A...
22) Which of the following would not increase the supply curve of loanable funds? A) A Federal Reserve purchase does of U.S. Government securities from commercial banks. B) A higher interest rate. C) An increase in the nation's real income D) All of the above shift the supply. 23) In Keynes'...
1 answer
A strip of invisible tape 0.13 m long by 0.011 m wide is charged uniformly with...
A strip of invisible tape 0.13 m long by 0.011 m wide is charged uniformly with a total net charge of 4 nC (nano = 1 ✕ 10−9) and is suspended horizontally, so it lies along the x axis, with its center at the origin, as shown in the figure below. Calculate the approximate electric field ...
1 answer
Paragraph answering the question. Make believe you accumulated plastic for a week. 2 paragraphs hwy100 Port...
Paragraph answering the question. Make believe you accumulated plastic for a week. 2 paragraphs hwy100 Port Vadia Ancha una Atascos National Wildlife Refuge Schlitterbahn Isla Blanca Queen Isabella a Grande Unit bost ramp Highway Ocelot TX Next LNG Bay Decade LNG basin Annova LNG LNG Gulf Coast ...
1 answer
Skolnick Corporation has provided the following information: Cost per Period Cost per Unit $5.60 $ 3.40...
Skolnick Corporation has provided the following information: Cost per Period Cost per Unit $5.60 $ 3.40 $ 2.20 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $110,50...