Question

Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis...

Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $110,500 of manufacturing overhead for an estimated allocation base of $85,000 direct material dollars to be used in production. The company has provided the following data for the just completed year:

  

  
  Purchase of raw materials $ 131,000
  Direct labor cost $ 81,000
  Manufacturing overhead costs:
     Indirect labor $ 96,400
     Property taxes $ 8,800
     Depreciation of equipment $ 19,000
     Maintenance $ 13,000
     Insurance $ 10,500
     Rent, building $ 40,000

  

  Beginning Ending
  Raw Materials $ 24,000 $ 13,000
  Work in Process $ 47,000 $ 37,000
  Finished Goods $ 70,000 $ 58,000


Part 3:

Compute the unadjusted cost of goods sold for the year. (Do not include any underapplied or overapplied overhead in your cost of goods sold figure.)

Part 4:

Job 215 was started and completed during the year. What price would have been charged to the customer if the job required $3,700 in direct materials and $4,700 in direct labor cost and the company priced its jobs at 65% above the job’s cost according to the accounting system? (Round your answer to the nearest dollar.)

Part 5:

Job 215 was started and completed during the year. What price would have been charged to the customer if the job required $3,700 in direct materials and $4,700 in direct labor cost and the company priced its jobs at 65% above the job’s cost according to the accounting system? (Round your answer to the nearest dollar.)

Direct materials $8,600
Direct labor
Manufacturing overhead
Work in process inventory $37,000

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Jenkins Company uses a job order cost system with overhead applied to jobs on the basis...
Jenkins Company uses a job order cost system with overhead applied to jobs on the basis of direct labor hours. The direct labor rate is $20 per hour, and the predetermined overhead rate is $15 per direct labor hour. The company worked on three jobs during April. Jobs A and B were in process at the beginning of April. Job A was completed and delivered to the customer. Job B was completed during April, but not sold. Job C was...
Atlantic Manufacturing Corp operates a job-order costing system and applies overhead cost to jobs on the...
Atlantic Manufacturing Corp operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. The company has provided the following data: (Amounts in dollars $) Estimated direct labor cost              85,000 Actual direct labor cost              87,000 Estimated manufacturing overhead costs           148,750 Actual manufacturing overhead costs           147,300 Purchases of raw materials (all direct)           141,000 Beginning Ending Raw materials              23,000                   16,000 Work in Process              44,000                   36,000 Finished...
Lott Company uses a job order cost system and applies overhead to production on the basis...
Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,000, direct labor $12,000, and manufacturing overhead $16,000. As of January 1, Job 49 had been completed at a cost of $90,000 and was part of finished goods inventory. There was a $15,000...
Jenkins Company uses a job order cost system with overhead applied to jobs on the basis...
Jenkins Company uses a job order cost system with overhead applied to jobs on the basis of direct labor hours. The direct labor rate is $20 per hour, and the predetermined overhead rate is $15 per direct labor hour. The company worked on three jobs during April. Jobs A and B were in process at the beginning of April. Job A was completed and delivered to the customer. Job B was completed during April, but not sold. Job C was...
Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis...
Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.80 per machine-hour was based on a cost formula that estimates $232,400 of total manufacturing overhead for an estimated activity level of 83,000 machine-hours. Required: 1. Assume that during the year the company works only 78,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the amount of overhead...
Benner Company uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined...
Benner Company uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor hours. Manufacturing overhead and direct labor hours were estimated at $66,000 and 22,000 hours, respectively. In June, Job #461 was completed. Materials costs on the job totaled $4,923 and labor costs totaled $2,325 at $7.50 per hour (310 hours worked on this job). At the end of the year, it was determined that the company worked 23,975 direct...
Ravsten Company uses a job-order costing system.    The company applies overhead cost to jobs on...
Ravsten Company uses a job-order costing system.    The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 34,000 machine-hours and incur $176,800 in manufacturing overhead cost. The following transactions occurred during the year:    a. Raw materials requisitioned for use in production, $308,000 (80% direct and 20% indirect). b. The following costs were incurred for employee services:      Direct labor $ 179,000 Indirect labor $ 37,000...
Snappy Company uses job-order costing and applies overhead costs to jobs using a pre-determined overhead rate...
Snappy Company uses job-order costing and applies overhead costs to jobs using a pre-determined overhead rate of $12 per direct labor hour. During 2020, Snappy Company worked on the following jobs Job #16 Job #28 Job #35 beginning cost ............. $3,500 $1,600 $2,000 direct materials used ...... $2,800 $3,700 $2,600 direct labor cost .......... $2,000 $5,300 $3,600 direct labor hours ......... 200 hours 300 hours 280 hours By the end of 2020, Job #16 and Job #28 had been completed....
Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V,...
Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $5,000 for direct materials, $9,700 for direct labor, and $6,596 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $4,400 for direct materials and $4,400 for direct labor. Required: 1a. Should any overhead cost be applied to Job W at year-end? Yes...
ob-Order Costing Ace Custom Jewelry Company uses a job-order cost system. The company applies manufacturing overhead...
ob-Order Costing Ace Custom Jewelry Company uses a job-order cost system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor hours. The estimated MOH was $135,000 for the year and the estimated direct labor hours were 15,000 hours. In May, Job #378 was completed. Direct materials totaled $8,500. Total labor costs were $14,000 at $16 per hour. At the end of the year, it was determined that the company worked 16,000 direct labor...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT