2-216
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:
2-217
2-218
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
Direct materials used in production
$48,500
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:
2-219
2-220
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
Actual manufacturing overhead
incurred
$52,800
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:
2-221
2-222
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
Raw materials inventory, beginning
Add: Purchases of raw materials
69,000
Total raw materials available
Deduct: Raw materials inventory, ending
24,000
Raw materials used in production
81,000
Deduct: Indirect materials included in manufacturing overhead
8,000
Direct materials
The direct materials cost for August is:
2-223
2-224
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
raw materials
The cost of goods manufactured for August is:
2-225
2-226
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
Direct materials:
Raw materials inventory, beginning
Add: Purchases of raw materials
Total raw materials available
Deduct: Raw materials inventory, ending
Raw materials used in production
Deduct: Indirect materials included in manufacturing overhead
Direct labor
Manufacturing overhead cost applied to work in process
2-228
2-229
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
Direct materials
$56,000
Direct labor
Manufacturing overhead
Total manufacturing costs
Add: Beginning work in process
Deduct: Ending work in process
Cost of goods manufactured
The cost of goods manufactured for July is:
2-230
2-231
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
Direct materials
$56,000
Direct labor
Manufacturing overhead
Total manufacturing costs
Add: Beginning work in process
Deduct: Ending work in process
Cost of goods manufactured
Actual manufacturing overhead incurred
Manufacturing overhead applied to Work in Process
The adjusted cost of goods sold that appears on the income statement for July is:
2-232
Essay Questions
2-233
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.
2-234
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.