Post a New Question

Fin&Acc

posted by .

B3 Company 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 Ending
Raw materia $26,000 $31,000
Work in process 77,000 59,000
Finished goods 124,000 139,000


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 24,000 machine-hours and incur $216,000 in manufacturing overhead cost. The following transactions were recorded for the year:

• Raw materials were purchased, $434,000.
• Raw materials were requisitioned for use in production, $429,000 ($405,000 direct and $24,000 indirect).
• The following employee costs were incurred: direct labor, $207,000; indirect labor, $79,000; and administrative salaries, $171,000.
• Selling costs, $103,000.
• Factory utility costs, $27,000.
• Depreciation for the year was $106,000 of which $97,000 is related to factory operations and $9,000 is related to selling and administrative activities.
• Manufacturing overhead was applied to jobs. The actual level of activity for the year was 25,000 machine-hours.
• Sales for the year totaled $1,147,000.

Required:

a. Prepare a schedule of cost of goods manufactured in good form.

b. Was the overhead under- or overapplied? By how much?

Prepare an income statement for the year in good form. The company closes any under- or overapplied overhead to Cost of Goods Sold

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. accounting

    The Bags and Luggage Company had the following account balances as of January 1: Direct Materials Inventory $ 8,700 Work in Process Inventory 76,500 Finished Goods Inventory 53,000 Manufacturing Overhead - 0 - During the month of January, …
  2. Cost Accounting

    Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows. Case 1 2 Direct Materials Used $ 8,300 (g) Direct Labor 3,000 $ 4,000 Manufacturing Overhead 6,000 5,000 Total Manufacturing Costs (a) …
  3. Cost Accounting

    Case 1 Direct Materials Used $8,300 Direct Labor 3,000 Manufacturing Overhead 6,000 Total Manufacturing Costs (a) Beginning Work in Process 1,000 Ending Work in Process Inventory (b) Sales 22,500 Sales Discounts 1,500 Cost of Goods …
  4. accounting

    A company has an overhead application rate of 125% of direct labor costs. How much overhead would be allocated to a job if it required total direct labor cost of $20,000?
  5. Accounting

    Please Help!!!! Trying to get a little help on working this accounting problem. Please help... Jawed enterprises uses a job-order costing system and a predetermined overhead rate based on machine hours. At the beginning of the year, …
  6. Accounting 1

    Oscar Corp. applies manufacturing overhead to production at 150% of direct labor cost. During 20x5, manufacturing overhead of $180,000 was applied to production; actual manufacturing overhead was $199,000. Beginning Work in Process …
  7. Accounting 10

    Oscar Corp. applies manufacturing overhead to production at 150% of direct labor cost. During 20x5, manufacturing overhead of $180,000 was applied to production; actual manufacturing overhead was $199,000. Beginning Work in Process …
  8. Accounting 10 PLEASE HELP ME!

    Oscar Corp. applies manufacturing overhead to production at 150% of direct labor cost. During 20x5, manufacturing overhead of $180,000 was applied to production; actual manufacturing overhead was $199,000. Beginning Work in Process …
  9. Accounting

    Rexford Company manufactures finger splints for kids who get tendonitis from playing video games. The firm had the following inventories at the beginning and end of the month of January. January 1 January 31 Finished goods $126,000 …
  10. Accounting

    Beginning work in process inventory 17,000 40%. Transferred in from the prior department 72,000. Ending work in process inventory 18,000 30% According to the company records the conversion cost in the beginning work in process inventory …

More Similar Questions

Post a New Question