Question

1. What is the cost of direct materials used? 2. What is the cost of indirect...

1.

What is the cost of direct materials used?

2.

What is the cost of indirect materials used?

3.

What is the cost of direct labor?

4.

What is the cost of indirect labor?

5.

What is the cost of goods manufactured?

6.

What is the cost of goods sold (before adjusting for any under- or overallocated manufacturing overhead)?

7.

What is the actual manufacturing overhead?

8.

How much manufacturing overhead was allocated to jobs?

9.

What is the predetermined manufacturing overhead rate as a percentage of direct labor cost?

10.

Is manufacturing overhead underallocated or overallocated? By how much?

Work in Process

Wages

Manufacturing

Finished Goods

Raw Materials

Inventory

Payable

Overhead

Inventory

Inventory

31,000

125,000

70,000

70,000

1,500

42,000

125,000

112,500

57,500

32,500

60,500

9,500

42,000

Balance 0

37,500

PrintDone

Homework Answers

Answer #1
Q1.
Answer is Direct material cost used: $ 31000
Q2. Cost of Indirect material used is $ 1500
(i.e. $32500-31000)
Q3. Cost of direct labor: $ 60500
Q4. cost of Indirect labor: $ 9500
Q5. Cost of Goods manufactured: $ 125000
(Amount credited in WIP)
Q6. Cost of goods sold: $ 112500
(Amount credited in FG inventory)
Q7. Actual Manufacturing OH is $ 48500
(i.e. 1500+9500+37500)
Q8. Manufacturing OH allocated to Jobs is $42000
Q9. Predetermined OH rate is 60% of labor cost
Predetermined OH rate: 42000 /70000 *100 = 60%
Q10. Under-allocated Overheads by $ 6500
(i.e. Incurred -Applied)
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