Respuesta :
Answer:
Instructions are listed below
Explanation:
Giving the following information:
Applies overhead cost to jobs based on direct materials used in production. Its predetermined overhead rate was based on a cost formula that estimated $130,500 of manufacturing overhead for an estimated allocation base of $87,000 direct material dollars to be used in production.
The company has provided the following data for the just-completed year:
Purchase of raw materials $ 140,000
Direct labor cost $ 83,000
Manufacturing overhead costs:
Indirect labor $ 160,400
Property taxes $ 8,900
Depreciation of equipment $ 15,000
Maintenance $ 11,000
Insurance $ 8,500
Rent, building $ 33,000
Total overhead: 236,800
Inventory:
Beginning Raw Materials $ 26,000
Ending Raw Materials $11,000
Beginning Work in Process $ 49,000
Ending WiP$ 37,000
Beginning Finished Goods $ 71,000
Ending finished goods $ 58,000
1) Predetermined overhead rate= total estimated overhead for the period/ total amount of allocation base
Predetermined overhead rate= 130500/ 87000= $1.5 per direct material used
2) First, we need to determine the allocated overhead:
Direct materials used= beginning inventory + purchases - ending inventory= 26000 + 140000 - 11000= $155,000
Allocated overhead= 1.5* 155,000= $232,500
Under allocation= real overhead - allocated overhead= 232500 - 130500= 102,000 underallocated
3) Cost of goods manufactured:
Beginning WIP= 49,000
Direct materials= 155000
Direct labor= 83000
Manufacuring overhead (allocated)= 130500
Ending WIP= 37000 (-)
Cost of goods manufactured= $380,500
4) Cost of goods sold= beginning finished inventory + Cost of goods manufactured - ending finished inventory
COGS= 71000 + 380500 - 58000= $393,500
Answer:
1. Pre - determined rate = $1.5 per direct material used
2. under applied overhead = $ 4300
3.Cost of goods manufactured =$486800
4.COGS= $499800
Explanation:
we know that:
1. Pre-determined overhead rate = estimated manufacturing overhead / total units in allocation base.
= 130500/ 87000 = $ 1.5 per direct material.
Actual Factory overhead:
Indirect labor = 160400
Property taxes = 8900
Depreciation of equipment = 15000
Maintenance = 11000
Insurance = 8500
Rent building = 33000
Total = $ 236800
Applied factory overhead:
Applied factory overhead = Predetermined rate * material used in production.
= $1.5 * 155000 = 232500.
Material used in production:
Material used = opening + purchased - ending
= 26000 +140000 - 11000 = 155000.
Amount of under or over applied overhead:
Actual overhead = 236800
Applied overhead = 232500
Under applied overhead = $ 4300.
Cost of goods manufactured:(COGM)
COGM = manufacturing cost + work in process (open) - work in process (end).
Manufacturing cost = direct material used + direct labor + factory overhead
= 155000+83000+236800
= $474800.
COGM= 474800+49000-37000 = 486800
Cost of goods sold:(COGS)
COGS = finished goods (open) + COGM -finished goods( end)
= 71000+486800-58000 = $ 499800