Reference no: EM132534156
Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $59,400 and its total manufacturing overhead cost to be $95,040.
- Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement.
Required:
Question 1. Calculate the predetermined overhead rate.
Question 2. Fill in the missing values in the T-accounts.
Question 3. Compute over- or underapplied overhead.
Question 4. Demonstrate how to prepare a statement of cost of goods manufactured and sold including the adjustment for over- or underapplied overhead.
Question 5. Demonstrate how to prepare a brief income statement for the company.T-Charts for part 2:
Raw Materials Inventory
Beginning Balance 13400 ?
Purchases 94200
Ending Balance 29300
Work In Process Inventory
Beginning Balance 28400 ?
Direct Materials 69500
Direct Labor 40,400
Applied Overhead ?
Ending Balance 19800
Finished Goods Inventory
Beginning Balance 40700 ?
Cost of goods Completed ?
Ending Balance 48200
Cost of Goods Sold
Unadjusted cost of Goods Sold ?
Adjusted cost of Goods Sold ?
Sales revenue
305,000
Manufacturing Overhead
Indirect Materials 8800 ? Applied Overhead
Indirect Labor 13900
Factory Depreciation 11,100
Factory Rent 5900
Factory Utilities 1400
Other Factory Cost 8600
Actual Overhead 49700
Selling, General, and Admin Expenses
Adm. Salaries 26100
Office Depreciation 18100
Advertising 13200
Ending Balance 57400
Chart for Part 4:
Beginning Raw Materials Inventory:
Plus: Raw Materials Inventory:
Less: Indirect Material Used:
Less: Ending Raw Materials Inventory:
Direct Materials Used in Production:
Direct Labor:
Manufacturing Overhead:
Total Current Manufacturing Costs $0
Plus: Beginning Work in Process Inventory:
Total Work In Process $0
Less: Ending work in process:
Cost Of Goods Manufactured:
Plus: Beginning Finished Goods Inventory:
Cost of Goods Available for sale $0
Less: Ending finished goods inventory:
Unadjusted Cost of Goods Sold:
:Adjustment for Overapplied Overhead:
Adjusted cost of Goods Sold: