A1Bс1 Stanford Enterprises uses job-order costing.2 The allocation base for overhead is direct labor hours.3IA4 Data for the year just ended:5 Estimated total manufacturing overhead cost6 Estimated total direct labor hours7 Actual total direct labor hours8232425269 Actual costs for the year:101112 Manufacturing overhead costs1314 Inventories:1516171819 Use the data to answer the following.202728XPurchase of raw materials (all direct)Direct labor costRaw materials (all direct)Work in processFinished goods◄Predetermined overhead rateActual direct labor hoursManufacturing overhead appliedfxx Stanford Enterprises uses job-order costing.Sheet1D+Beginning$$$Underapplied (overapplied) manufacturing overhead15,000 $27,875 $34,600 $21 1. Compute applied overhead and determine the amount of underapplied or overapplied overhead:22 Actual manufacturing overhead costE$ 275,00025,00027,760$375,000$536,300$302,750Ending11,37522,35026,450FGHIY A1A33 Direct materials:34ABс29 2. Prepare a schedule of cost of goods manufactured:303132Raw materials inventory, beginning35 Add: Purchases of raw materials36Total raw materials available37 Deduct: Raw materials inventory, endingRaw materials used in productionStanford EnterprisesSchedule of Cost of Goods Manufactured44 Deduct: Ending work in process inventory45 Cost of goods manufactured463839 Direct labor40 Manufacturing overhead applied to work in process41 Total manufacturing costs42 Add: Beginning work in process inventory43 Total cost of work in process47 3. Prepare a schedule of cost of goods sold.484950fx5152 Finished goods inventory, beginningD53 Add: Cost of goods manufactured54 Cost of goods available for sale55 Deduct: Finished goods inventory, endingStanford EnterprisesSchedule of Cost of Goods Sold56 Unadjusted cost of goods sold57 Underapplied (overapplied) overhead58 Adjusted cost of goods sold59Stanford Enterprises uses job-order costing.EGHI

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Description: A1Bс1 Stanford Enterprises uses job-order costing.2 The allocation base for overhead is direct labor hours.3IA4 Data for the year just ended:5 Estimated total manufacturing overhead cost6 Estimated total direct labor hours7 Actual total direct labor

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B Stanford Enterprises uses job-order costing. The allocation base for overhead is direct labor hours. A Data for the year just ended: Estimated total manufacturing overhead cost Estimated total direct labor hours Actual total direct labor hours Actual costs for the year: Purchase of raw materials (all direct) Direct labor cost Manufacturing overhead costs D Beginning $ $ $ E $ 275,000 25,000 27,760 Underapplied (overapplied) manufacturing overhead $375,000 $536,300 $302,750 Inventories: Raw materials (all direct) Work in process Finished goods Use the data to answer the following. 1. Compute applied overhead and determine the amount of underapplied or overapplied overhead: Actual manufacturing overhead cost Predetermined overhead rate Actual direct labor hours Manufacturing overhead applied Ending 15,000 $ 11,375 27,875 $ 22,350 34,600 $ 26,450 F G H I

B Stanford Enterprises uses job-order costing. The allocation base for overhead is direct labor hours. A Data for the year just ended: Estimated total manufacturing overhead cost Estimated total direct labor hours Actual total direct labor hours Actual costs for the year: Purchase of raw materials (all direct) Direct labor cost Manufacturing overhead costs D Beginning $ $ $ E $ 275,000 25,000 27,760 Underapplied (overapplied) manufacturing overhead $375,000 $536,300 $302,750 Inventories: Raw materials (all direct) Work in process Finished goods Use the data to answer the following. 1. Compute applied overhead and determine the amount of underapplied or overapplied overhead: Actual manufacturing overhead cost Predetermined overhead rate Actual direct labor hours Manufacturing overhead applied Ending 15,000 $ 11,375 27,875 $ 22,350 34,600 $ 26,450 F G H I

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Chapter1: Financial Statements And Business Decisions

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Concept explainers

Process Costing

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure. 

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.

Topic Video

Question

A1
B
с
1 Stanford Enterprises uses job-order costing.
2 The allocation base for overhead is direct labor hours.
3
I
A
4 Data for the year just ended:
5 Estimated total manufacturing overhead cost
6 Estimated total direct labor hours
7 Actual total direct labor hours
8
23
24
25
26
9 Actual costs for the year:
10
11
12 Manufacturing overhead costs
13
14 Inventories:
15
16
17
18
19 Use the data to answer the following.
20
27
28
X
Purchase of raw materials (all direct)
Direct labor cost
Raw materials (all direct)
Work in process
Finished goods
◄
Predetermined overhead rate
Actual direct labor hours
Manufacturing overhead applied
fxx Stanford Enterprises uses job-order costing.
Sheet1
D
+
Beginning
$
$
$
Underapplied (overapplied) manufacturing overhead
15,000 $
27,875 $
34,600 $
21 1. Compute applied overhead and determine the amount of underapplied or overapplied overhead:
22 Actual manufacturing overhead cost
E
$ 275,000
25,000
27,760
$375,000
$536,300
$302,750
Ending
11,375
22,350
26,450
F
G
H
I
Y

A1
A
33 Direct materials:
34
A
B
с
29 2. Prepare a schedule of cost of goods manufactured:
30
31
32
Raw materials inventory, beginning
35 Add: Purchases of raw materials
36
Total raw materials available
37 Deduct: Raw materials inventory, ending
Raw materials used in production
Stanford Enterprises
Schedule of Cost of Goods Manufactured
44 Deduct: Ending work in process inventory
45 Cost of goods manufactured
46
38
39 Direct labor
40 Manufacturing overhead applied to work in process
41 Total manufacturing costs
42 Add: Beginning work in process inventory
43 Total cost of work in process
47 3. Prepare a schedule of cost of goods sold.
48
49
50
fx
51
52 Finished goods inventory, beginning
D
53 Add: Cost of goods manufactured
54 Cost of goods available for sale
55 Deduct: Finished goods inventory, ending
Stanford Enterprises
Schedule of Cost of Goods Sold
56 Unadjusted cost of goods sold
57 Underapplied (overapplied) overhead
58 Adjusted cost of goods sold
59
Stanford Enterprises uses job-order costing.
E
G
H
I

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Bernard Incorporated uses a job-order costing system and a predetermined overhead rate based on direct labor hours.At the beginning of the year, the company estimated manufacturing overhead for the year would be $1,184,000 and direct labor hours would be 80,000 hours.The following information pertains to September of the current year: Job X10 Job X11 Job X12 Work in Process, Sept. 1 $14,000 $18,000 $24,000 March production activity: Materials used $12,800 $8,200 $9,700 Direct labour used $3,400 $4,600 $6,500 Machine hours 390 620 790 Labour hours 1,050 1,170 1,180 Required (round answers to 2 decimal points) At the end of the September Jobs X10 and Job X11 were completed, and Job X10 was sold and delivered to a customer - show the ending balances of the Work in Process and Finished Goods inventory accounts (assume no beginning Finished Goods inventory). If actual manufacturing overhead…
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A Company uses a job order costing system and allocates its manufacturing overhead costs based on direct labor costs. The Company's production costs for the year were: direct labor, $75,000; direct materials, $40,0003; and factory overhead applied $60,000. The predetermined overhead rate was: O a. 1.25%. O b. 53.3%. O c. 150%. O d. 80%. 125.%. IOUS PAGE NEXT PAGE hp
Problem #4:Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased.) In computing a predetermined overhead rate at the beginning of the year, the company’s estimates were: manufacturing overhead cost, $800,000; and direct materials to be used in production, $500,000. The company has provided the following data :BeginningEndingRaw materials$20,000$80,000Work in Process150,00070,000Finished Goods260,000400,000The following actual costs were incurred during the year:Purchase of direct raw materials $510,000Direct labor cost90,000Manufacturing overhead costs: 4Indirect labor170,000Property taxes48,000Depreciation-equipment260,000Maintenance95,000Insurance7,000Rent -Building180,000Required: 1.a. Compute the predetermined overhead rate for the yearb. Compute the amount of under-or over-applied overhead for the year.1.Prepare the statement of cost of goods…
Morrison Company uses job-order costing to assign manufacturing costs to jobs. Its balance sheet on January 1 is as follows: Morrison Company Balance Sheet January 1 Assets Cash Raw materials Work in process Finished goods Prepaid expenses Property, plant, and equipment (net) Total assets Liabilities and Stockholders' Equity Accounts payable Retained earnings Total liabilities and stockholders' equity $ 11,900 5,900 20,550 h. Manufacturing overhead applied to production, $141,000. i. Cost of goods manufactured, $293,800. j. Cash sales to customers, $401,720. k. Cost of goods sold (unadjusted), $289,800. 1. Cash payments to creditors, $77,200. m. Underapplied or overapplied overhead $? . Required: $ 34,800 During January the company completed the following transactions: a. Purchased raw materials on account, $90,800. b. Raw materials used in production, $93,600 ($78,600 was direct materials and $15,000 was indirect materials). c. Paid $195,100 of salaries and wages in cash ($110,200 was…
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