Budgeting ement of Ethical Professional Practice, a management accountant who r

Question

Budgeting ement of Ethical Professional Practice, a management accountant who r personal benefit or unfair advantage demonstrates: es not use company information fo Integrity Credibility Competence Confidentiality 6. Given the following information, determine 1) the cost of goods manufactured for 5 points and 2) the cost of goods sold for 5 points. You must show your work to get credit Direct Labor Incurred Manufacturing Overhead Direct Materials Used Finished Goods Inventory, 1/1/2017 Finished Goods Inventory, 12/31/2017 $10,000 83,000 111,000 147,500 168,000 72,500 98,000 Work-in-Process Inventory, 12/31/2017 27. John Corporation estimated manufacturing overhead costs for the year to be $696,000. Joh also estimated 12,000 machine hours and 2,000 direct labor hours for the year. John Corporati uses machine hours for predetermined overhead allocation rate. On October 31, Job 71 was completed. It required 12 machine hours and 4 direct labor hours 1. What is the predetermined overhead allocation rate for the year? 2. How much allocated manufacturing overhead is assigned to job 71? You must show your work to get credit.

Explanation / Answer

Question - 26

Cost of goods manufactured = 178500

Cost of goods sold = 158000

Steps involved in calculation

Question - 27

(1) Predetermined Overhead allocation rate for the year = 696000 / 12000 = 58 per hour

(2) Manufacturing OH assigned to Job 71 = 12 machine hours * 58 = $ 696

Direct Materials 111000 Direct Labor 10000 Manufacturing OH 83000 204000 (+) WIP 1/1/2017 72500 (-) WIP 12/31/2017 98000 Cost of Goods Manufactured 178500 (+) Finished goods 1/1/2017 147500 (-) Finished goods 12/31/2017 168000 Cost of goods sold 158000

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