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116.
117.
118.
Fill in the missing items for the following inventories:
(A)
(B)
(C)
(D)
(E)
Beginning
Bal.
$68,000
$7,100
$100,000
?
$85,200
Ending
Balance
?
6,200
110,000
134,400
74,400
Transferred
in
64,000
?
75,000
153,600
?
Transferred
out
76,000
22,000
?
182,400
264,000
119.
Fill in the missing items for the following inventories:
(A)
(B)
(C)
(D)
(E)
Beginning
Bal.
$85,000
$3,550
$780,000
$36,000
?
Ending
Balance
?
3,210
640,000
$36,000
32,000
Transferred
in
80,000
10,550
?
75,000
64,000
Transferred
out
76,000
?
1,400,000
?
42,000
6-105
120.
Assume that the following T-accounts represent data from the Morgensen Corporation's
accounting records.
Required:
(a) Find the missing amounts represented by the letters a, b, c, d and e.
(b) Determine the company's predetermined overhead rate, based on labor cost.
BB = Beginning Balance; EB = Ending Balance TO = Transferred Out
Cost of Goods
Sold
Raw-Material
Inventory
Finished
Goods
39,750
BB (a)
BB
6,750
(1)
22,500
TO
15,750
(c)
(d)
EB
7,125
EB
10,950
Work-in-Process
Inventory
Manufacturing
Overhead
BB 4,500
17,400
12,000
Mat’s (b)
Labor
24,000
Overhead
(e)
43,950
EB 12,300
121.
6-107
122.
Gentry Cabinetry produces two models of home shelving, the Basic and the Mega. Data on
operations and costs for November are:
Basic
Mega
Total
Machine hours
8,000
4,000
12,000
Direct labor hours
6,000
4,000
10,000
Units produced
1,000
250
1,250
Direct material costs
$20,000
$7,500
$27,500
Direct labor costs
129,000
71,000
200,000
Manufacturing
overhead costs
348,200
Total costs
$575,700
6-108
123.
Gentry Cabinetry produces two models of home shelving, the Basic and the Mega. Data on
operations and costs for November are:
Basic
Mega
Total
Machine hours
8,000
4,000
12,000
Direct labor hours
6,000
4,000
10,000
Units produced
1,000
250
1,250
Direct material costs
$20,000
$7,500
$27,500
Direct labor costs
129,000
71,000
200,000
Manufacturing
overhead costs
348,200
Total costs
$575,700
6-110
124.
Barton Carts produces two models of push carts, the Standard and the Deluxe. Data on
operations and costs for the month are:
Standard
Deluxe
Total
Machine hours
16,000
8,000
24,000
Direct labor hours
12,000
8,000
20,000
Units produced
4,000
1,000
5,000
Direct material
costs
$80,000
$30,000
$110,000
Direct labor costs
262,000
138,000
400,000
Manufacturing
overhead costs
557,400
Total costs
$1,067,400
6-112
125.
Misner Office Products produces three models of commercial shelving, the Basic, the
Advanced and the Superior. Data on operations and costs for the month are:
Basic
Advanced
Superior
Total
Machine
hours
8,000
6,000
4,000
18,000
Direct labor
hours
6,000
6,000
4,000
16,000
Units
produced
1,000
500
250
1,750
Direct
material costs
$20,000
$12,500
$7,500
$40,000
Direct labor
costs
129,000
100,000
71,000
300,000
Manufacturing
overhead
costs
540,800
Total costs
$880,800
6-114
126.
Misner Office Products produces three models of commercial shelving, the Basic, the
Advanced and the Superior. Data on operations and costs for the month are:
Basic
Advanced
Superior
Total
Machine
hours
8,000
6,000
4,000
18,000
Direct labor
hours
6,000
6,000
4,000
16,000
Units
produced
1,000
500
250
1,750
Direct
material costs
$20,000
$12,500
$7,500
$40,000
Direct labor
costs
129,000
100,000
71,000
300,000
Manufacturing
overhead
costs
540,800
Total costs
$880,800
6-116
127.
Pierce Carts produces three models of push carts, the Economy, the Standard, and the
Deluxe. Data on operations and costs for the month are:
Economy
Standard
Deluxe
Total
Machine
hours
8,000
16,000
8,000
32,000
Direct labor
hours
4,000
12,000
8,000
24,000
Units
produced
8,000
4,000
1,000
13,000
Direct
material costs
$100,000
$80,000
$30,000
$210,000
Direct labor
costs
200,000
262,000
138,000
600,000
Manufacturing
overhead
costs
684,000
Total costs
$1,494,000
6-118
128.
The management of Marysville Corporation would like to investigate the possibility of
basing its predetermined overhead rate on activity at capacity rather than on the
estimated amount of activity for the year. The company's controller has provided an
example to illustrate how this new system would work. In this example, the allocation base
is machine-hours and the estimated amount of the allocation base for the upcoming year
is 48,000 machine-hours. In addition, capacity is 53,000 machine-hours and the actual
activity for the year is 47,700 machine-hours. All of the manufacturing overhead is fixed
and is $1,144,800 per year. For simplicity, it is assumed that this is the estimated
manufacturing overhead for the year as well as the manufacturing overhead at capacity
and the actual amount of manufacturing overhead for the year. Job J42O, which required
40 machine-hours, is one of the jobs worked on during the year.
Required:
a. Determine the predetermined overhead rate if the predetermined overhead rate is
based on the estimated amount of the allocation base.
b. Determine how much overhead would be applied to Job J42O if the predetermined
overhead rate is based on estimated amount of the allocation base.
c. Determine the predetermined overhead rate if the predetermined overhead rate is based
on the amount of the allocation base at capacity.
d. Determine how much overhead would be applied to Job J42O if the predetermined
overhead rate is based on the amount of the allocation base at capacity.
6-120
129.
The management of Norbert Corporation would like to investigate the possibility of basing
its predetermined overhead rate on activity at capacity rather than on the estimated
amount of activity for the year. The company's controller has provided an example to
illustrate how this new system would work. In this example, the allocation base is
machine-hours and the estimated amount of the allocation base for the upcoming year is
70,000 machine-hours. In addition, capacity is 82,000 machine-hours and the actual
activity for the year is 72,900 machine-hours. All of the manufacturing overhead is fixed
and is $4,132,800 per year. For simplicity, it is assumed that this is the estimated
manufacturing overhead for the year as well as the manufacturing overhead at capacity
and the actual amount of manufacturing overhead for the year. Job O65A, which required
300 machine-hours, is one of the jobs worked on during the year.
Required:
a. Determine the predetermined overhead rate if the predetermined overhead rate is
based on the amount of the allocation base at capacity.
b. Determine how much overhead would be applied to Job O65A if the predetermined
overhead rate is based on the amount of the allocation base at capacity.
