1) Lafleur inc uses a job order costing system. Manufacturing overhead is applie
ID: 2372338 • Letter: 1
Question
1) Lafleur inc uses a job order costing system. Manufacturing overhead is applied on the basis of DL cost. Total MOH was estimated to be $120,000 for the year: DL was estimated to cost $150000. 1/1 12/31 RM inventory $13000 10000 WIP 29000 22000 FG 41000 32000 The following transcations have occurring during the year. RM 100000 DM used 87000 DL 135000 Indirect Materials used 16000 Indirect Labor 19000 Factory equ. Depreciation 28000 Fac. Rent 15000 Fac. Utilities 11500 Other factory costs 8500 a. Calculate the predetermined overhead reate b. Cost of goods manufactured c. The over or under applied overhead d. Adjusted cost of goods soldExplanation / Answer
A B C
DM ; 73,150 ; 83,000 ; 63,150
DL ; 50,000 ; 100,000 ; 135,135
Applied MO ; 42,500 ; 85,000 ; 114,865
TMC ; 165,650 ; 268,000 ; 250,000
Beg WIP ; 35,850 ; 15,500 ; 18,000
Total cost of WIP ; 201,500 ; 283,500 ; 268,000
End WIP ; 9,200 ; 11,800 ; 6,000
COGM ; 192,300 ; 271,700 ; 262,000
TMC = DM + DL + Applied MO
TMC + Beg WIP = Total Cost of WIP
COGM + End WIP = Total Cost of WIP
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