117. The following partially completed T-accounts summarize transactions for Farwest
Corporation during the year:
Raw Materials
Beg Bal 4,700 10,000
6,900
Work in Process
Beg Bal 4,600 26,300
7,400
8,000
6,800
Finished Goods
Beg Bal 1,900 22,900
26,300
Manufacturing Overhead
2,600 6,800
3,000
1,900
Wages & Salaries Payable
12,300 Beg Bal 1,400
11,000
Cost of Goods Sold
22,900
The manufacturing overhead was:
118. Dapper Corporation had only one job in process on May 1. The job had been charged with
$3,400 of direct materials, $4,640 of direct labor, and $9,200 of manufacturing overhead cost. The
company assigns overhead cost to jobs using the predetermined overhead rate of $23.00 per
direct labor-hour.
During May, the following activity was recorded:
Raw materials (all direct materials):
Beginning balance $8,500
Purchased during the month $42,000
Used in production $48,500
Labor:
Direct labor-hours worked during the month 2,200
Direct labor cost incurred $25,520
Actual manufacturing overhead costs incurred $52,800
Inventories:
Raw materials, May 30 ?
Work in process, May 30 $32,190
Work in process inventory on May 30 contains $7,540 of direct labor cost. Raw materials consist
solely of items that are classified as direct materials.
The balance in the raw materials inventory account on May 30 was:
119. Dapper Corporation had only one job in process on May 1. The job had been charged with
$3,400 of direct materials, $4,640 of direct labor, and $9,200 of manufacturing overhead cost. The
company assigns overhead cost to jobs using the predetermined overhead rate of $23.00 per
direct labor-hour.
During May, the following activity was recorded:
Raw materials (all direct materials):
Beginning balance $8,500
Purchased during the month $42,000
Used in production $48,500
Labor:
Direct labor-hours worked during the month 2,200
Direct labor cost incurred $25,520
Actual manufacturing overhead costs incurred $52,800
Inventories:
Raw materials, May 30 ?
Work in process, May 30 $32,190
Work in process inventory on May 30 contains $7,540 of direct labor cost. Raw materials consist
solely of items that are classified as direct materials.
The cost of goods manufactured for May was:
120. Dapper Corporation had only one job in process on May 1. The job had been charged with
$3,400 of direct materials, $4,640 of direct labor, and $9,200 of manufacturing overhead cost. The
company assigns overhead cost to jobs using the predetermined overhead rate of $23.00 per
direct labor-hour.
During May, the following activity was recorded:
Raw materials (all direct materials):
Beginning balance $8,500
Purchased during the month $42,000
Used in production $48,500
Labor:
Direct labor-hours worked during the month 2,200
Direct labor cost incurred $25,520
Actual manufacturing overhead costs incurred $52,800
Inventories:
Raw materials, May 30 ?
Work in process, May 30 $32,190
Work in process inventory on May 30 contains $7,540 of direct labor cost. Raw materials consist
solely of items that are classified as direct materials.
The entry to dispose of the underapplied or overapplied manufacturing overhead cost for the
month would include a:
121. Messana Corporation reported the following data for the month of August:
Inventories: Beginning Ending
Raw materials $36,000 $24,000
Work in process $23,000 $17,000
Finished goods $37,000 $55,000
Additional information:
Raw materials purchases $69,000
Direct labor cost $94,000
Manufacturing overhead cost incurred $54,000
Indirect materials included in manufacturing overhead cost incurred
$8,000
Manufacturing overhead cost applied to Work in Process $56,000
The direct materials cost for August is:
122. Messana Corporation reported the following data for the month of August:
Inventories: Beginning Ending
Raw materials $36,000 $24,000
Work in process $23,000 $17,000
Finished goods $37,000 $55,000
Additional information:
Raw materials purchases $69,000
Direct labor cost $94,000
Manufacturing overhead cost incurred $54,000
Indirect materials included in manufacturing overhead cost incurred
$8,000
Manufacturing overhead cost applied to Work in Process $56,000
The cost of goods manufactured for August is:
123. Messana Corporation reported the following data for the month of August:
Inventories: Beginning Ending
Raw materials $36,000 $24,000
Work in process $23,000 $17,000
Finished goods $37,000 $55,000
Additional information:
Raw materials purchases $69,000
Direct labor cost $94,000
Manufacturing overhead cost incurred $54,000
Indirect materials included in manufacturing overhead cost incurred $8,000
Manufacturing overhead cost applied to Work in Process $56,000
The adjusted cost of goods sold that appears on the income statement for August is:
124. Tondre Inc. has provided the following data for the month of July:
Inventories: Beginning Ending
Work in process $23,000 $21,000
Finished goods $26,000 $35,000
Additional information:
Direct materials $56,000
Direct labor cost $91,000
Manufacturing overhead cost incurred $58,000
Manufacturing overhead cost applied to Work in Process $61,000
The cost of goods manufactured for July is:
125. Tondre Inc. has provided the following data for the month of July:
Inventories: Beginning Ending
Work in process $23,000 $21,000
Finished goods $26,000 $35,000
Additional information:
Direct materials $56,000
Direct labor cost $91,000
Manufacturing overhead cost incurred $58,000
Manufacturing overhead cost applied to Work in Process $61,000
The adjusted cost of goods sold that appears on the income statement for July is:
126. Christofferse Corporation bases its predetermined overhead rate on the estimated
machine-hours for the upcoming year. Data for the most recently completed year appear below:
Estimates made at the beginning of the year:
Estimated machine-hours 38,000
Estimated variable manufacturing overhead $3.33 per machine-hour
Estimated total fixed manufacturing overhead $548,720
Actual machine-hours for the year 33,700
Required:
Compute the company’s predetermined overhead rate for the recently completed year.
127. Cacioppo Corporation bases its predetermined overhead rate on the estimated labor–
hours for the upcoming year. At the beginning of the most recently completed year, the company
estimated the labor-hours for the upcoming year at 66,000 labor-hours. The estimated variable
manufacturing overhead was $7.45 per labor-hour and the estimated total fixed manufacturing
overhead was $1,760,220. The actual labor-hours for the year turned out to be 63,800 labor-
hours.
Required:
Compute the company’s predetermined overhead rate for the recently completed year.
128. Sigel Corporation bases its predetermined overhead rate on the estimated machine–hours
for the upcoming year. At the beginning of the most recently completed year, the company
estimated the machine-hours for the upcoming year at 52,000 machine-hours. The estimated
variable manufacturing overhead was $3.40 per machine–hour and the estimated total fixed
manufacturing overhead was $624,520.
Required:
Compute the company’s predetermined overhead rate.