248) Tondre Corporation has provided the following data concerning last month’s operations.
Direct materials
$24,000
Direct labor
$58,000
Manufacturing overhead cost applied to Work in Process
$87,000
Overapplied overhead
$1,000
Beginning
Ending
Raw materials inventory
$12,000
$17,000
Work in process inventory
$50,000
$77,000
Finished goods inventory
$28,000
$48,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
Required:
a. Determine the cost of goods manufactured for the month.
b. Prepare a Schedule of Cost of Goods Sold for the month.
Direct materials
Direct labor
58,000
Manufacturing overhead cost applied to work in process
87,000
Total manufacturing costs
Add: Beginning work in process inventory
50,000
Deduct: Ending work in process inventory
77,000
Cost of goods manufactured
Beginning finished goods inventory
Add: Cost of goods manufactured
Cost of goods available for sale
Deduct: Ending finished goods inventory
Unadjusted cost of goods sold
Deduct: Overapplied overhead
Add: Underapplied overhead
Adjusted cost of goods sold
249) Rochford Corporation has provided the following data concerning last month’s operations.
Purchases of raw materials
$25,000
Indirect materials included in manufacturing overhead
$5,000
Direct labor cost
$58,000
Manufacturing overhead cost applied to Work in Process
$73,000
Beginning
Ending
Raw materials inventory
$11,000
$21,000
Work in process inventory
$49,000
$74,000
Required:
Determine the cost of goods manufactured for the month.
Direct materials:
Beginning raw materials inventory
Add: Purchases of raw materials
25,000
Total raw materials available
36,000
Deduct: Ending raw materials inventory
21,000
Raw materials used in production
15,000
overhead
Direct labor
58,000
process
73,000
Total manufacturing costs
Add: Beginning work in process inventory
49,000
Deduct: Ending work in process inventory
74,000
Cost of goods manufactured
250) Rodenberger Corporation has provided the following data concerning last month’s
operations.
Purchases of raw materials
$31,000
Indirect materials included in manufacturing overhead
$6,000
Beginning
Ending
Raw materials inventory
$12,000
$17,000
Required:
Determine the direct materials cost for the month.
Direct materials:
Beginning raw materials inventory
Add: Purchases of raw materials
31,000
Total raw materials available
43,000
Deduct: Ending raw materials inventory
17,000
Raw materials used in production
26,000
Deduct: Indirect materials included in manufacturing overhead
Direct materials
298
251) Bledsoe Corporation has provided the following data for the month of November:
Beginning
Ending
Raw materials
$
25,000
$
21,000
Work in process
$
17,000
$
10,000
Finished Goods
$
48,000
$
56,000
Additional information:
Raw materials purchases
$
72,000
Direct labor cost
$
92,000
Manufacturing overhead cost incurred
$
42,000
Indirect materials included in manufacturing overhead cost incurred
$
4,000
Manufacturing overhead cost applied to Work in Process
$
41,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
Required:
Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold.
300
252) Baab Corporation is a manufacturing firm that uses job-order costing. The company’s
inventory balances were as follows at the beginning and end of the year:
Beginning
Balance
Ending
Balance
Raw materials
$
14,000
$
22,000
Work in process
$
27,000
$
9,000
Finished Goods
$
62,000
$
77,000
The company applies overhead to jobs using a predetermined overhead rate based on
machine-hours. At the beginning of the year, the company estimated that it would work
33,000 machine-hours and incur $231,000 in manufacturing overhead cost. The following
transactions were recorded for the year:
Raw materials were purchased, $315,000.
Raw materials were requisitioned for use in production, $307,000 ($281,000 direct and
$26,000 indirect).
The following employee costs were incurred: direct labor, $377,000; indirect labor,
$96,000; and administrative salaries, $172,000.
Selling costs, $147,000.
Factory utility costs, $10,000.
Depreciation for the year was $127,000 of which $120,000 is related to factory operations
and $7,000 is related to selling, general, and administrative activities.
Manufacturing overhead was applied to jobs. The actual level of activity for the year was
34,000 machine-hours.
Sales for the year totaled $1,253,000.
Required:
a. Prepare a schedule of cost of goods manufactured.
b. Was the overhead underapplied or overapplied? By how much?
c. Prepare an income statement for the year. The company closes any underapplied or overapplied
overhead to Cost of Goods Sold.
304
253) The following cost data relate to the manufacturing activities of the Kanaba Corporation last
year:
Manufacturing overhead costs:
Property taxes
$1,500
Utilities, factory
2,500
Indirect labor
5,000
Depreciation, factory
12,000
Insurance, factory
3,000
Total
$24,000
Other costs incurred:
Purchases of direct materials
$16,000
Direct labor cost
$20,000
Inventories:
Direct materials, January 1
$4,000
Direct materials, December 31
$3,500
Work in process, January 1
$3,000
Work in process, December 31
$3,750
The company uses a predetermined overhead rate to apply manufacturing overhead cost to
production. The rate last year was $5.00 per machine-hour; a total of 5,000 machine-hours were
recorded for the year.
Required:
a. Compute the amount of underapplied or overapplied overhead cost for the year.
b. Prepare a schedule of Cost of Goods Manufactured for the year.
254) Rieb Inc. has provided the following data for the month of September. There were no
beginning inventories; consequently, the direct materials, direct labor, and manufacturing
overhead applied listed below are all for the current month.
Work In
Process
Finished
Goods
Cost of Goods
Sold
Total
Direct materials
$
3,680
$
8,760
$
47,280
$
59,720
Direct labor
9,840
24,090
130,020
163,950
Manufacturing overhead
applied
6,160
10,780
60,060
77,000
Total
$
19,680
$
43,630
$
237,360
$
300,670
Manufacturing overhead for the month was overapplied by $7,000.
The company allocates any underapplied or overapplied overhead among work in process,
finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied
during the month in those accounts.
Required:
Provide the journal entry that would record the allocation of underapplied or overapplied among
work in process, finished goods, and cost of goods sold.
Overhead applied in work in process
$
6,160
%
Overhead applied in finished goods
10,780
14
%
Overhead applied in cost of goods sold
60,060
78
%
Total overhead applied
$
77,000
100
%
Manufacturing Overhead
Work in Process (8% × $7,000)
Finished Goods (14% × $7,000)
Cost of Goods Sold (78% × $7,000)
307
255) Testor Products uses a job-order costing system with a predetermined overhead rate based on
machine-hours. The company closes out any underapplied or overapplied overhead to Cost of
Goods Sold.
Required:
If overhead is overapplied, what adjustment does the company make to Cost of Goods Sold? Is
Cost of Goods Sold increased or decreased? Why?
256) Stangl Inc. has provided the following data for the month of September. There were no
beginning inventories; consequently, the direct materials, direct labor, and manufacturing
overhead applied listed below are all for the current month.
Work In
Process
Finished
Goods
Cost of
Goods Sold
Total
Direct materials
$
1,480
$
7,410
$
14,430
$
23,320
Direct labor
5,280
17,670
34,410
57,360
Manufacturing overhead
applied
3,770
8,700
16,530
29,000
Total
$
10,530
$
33,780
$
65,370
$
109,680
Manufacturing overhead for the month was underapplied by $3,000.
The company allocates any underapplied or overapplied overhead among work in process,
finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied
during the month in those accounts.
Required:
Determine the cost of work in process, finished goods, and cost of goods sold AFTER allocation of
the underapplied or overapplied overhead for the period.
