Question Completon Status: QUESTION 11 Bakersville Company is a manufacturing fi

Question

Question Completon Status: QUESTION 11 Bakersville 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: 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 33,000 machine-hours and incur $231,000 for the year: in manufacturing overhead cost. The following transactions were recorded : Raw materials were purchased, $315,000. Raw materials were requisitioned for use in production, $307,000 ($281,000 direct and $26,000 indirect The following employee costs were incurred: direct labor, $377,000: indirect labor, $96.000: and administrative salaries, $172.000. Selling costs, $147,000 : Factory utility costs, $10,000 : Depreciation fpr the year was $127.000 of which s120.000 is related to factory operations and $7,000 is related to selling general and administrative activities. . Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,000 machine-hours. Sales for the year totaled $1.253.000 Required a. Prepare a schedule of cost of goods manufactured. b. Was the overhead underallocated or overallocatect By how much? c. Prepare an income statement for the year. The company cioses any underallocated of overalocated overheac to Cost of Goods sold. TT!Anal 3 (12pt) :- ."

Explanation / Answer

Predetermined overhead rate = 231000/33000 7 Schedule for manufacturing cost Raw material used in production 281000 Direct labor 377000 manufacturing cost applied 238000 (34000*7) Total manufacturing cost 896000 Add Beginning work in progress 896000 less Ending work in progress Cost of goods manufactured 896000 Add Beginning finished goods inventory Cost of goods available for sale 896000 Less Ending finished goods inventory unadjusted Cost of goods sold 896000 Add Under applied overheads 14000 Cost of goods sold 910000 Indirect material 26000 Indirect labor 96000 Depreciation cost 120000 Factory utility cost 10000 Actual factory overheads 252000 Manufacturing overheads applied 238000 Under applied 14000 Please add the missing information for beginning and ending balance for Work in progress and finished goods

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.