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 Inventories: Raw materials (all direct) Work in process Finished goods Beginning $ $ $ 15,000 $ 27,875 $ 34,600 $ $ 275,000 25,000 27,760 $375,000 $536,300 $302,750 Ending 11,375 22,350 26,450

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
A
B
с
34
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
38
39 Direct labor
40 Manufacturing overhead applied to work in process
41 Total manufacturing costs
42 Add: Beginning work in process inventory
43
44 Deduct: Ending work in process inventory
45 Cost of goods manufactured
46
47 3. Prepare a schedule of cost of goods sold.
48
49
50
51
52 Finished goods inventory, beginning
53 Add: Cost of goods manufactured
D
Stanford Enterprises
Schedule of Cost of Goods Sold
54 Cost of goods available for sale
55 Deduct: Finished goods inventory, ending
56 Unadjusted cost of goods sold
57 Underapplied (overapplied) overhead
E
LL
F
G
H
Transcribed Image Text:A B с 34 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 38 39 Direct labor 40 Manufacturing overhead applied to work in process 41 Total manufacturing costs 42 Add: Beginning work in process inventory 43 44 Deduct: Ending work in process inventory 45 Cost of goods manufactured 46 47 3. Prepare a schedule of cost of goods sold. 48 49 50 51 52 Finished goods inventory, beginning 53 Add: Cost of goods manufactured D Stanford Enterprises Schedule of Cost of Goods Sold 54 Cost of goods available for sale 55 Deduct: Finished goods inventory, ending 56 Unadjusted cost of goods sold 57 Underapplied (overapplied) overhead E LL F G H
A
B
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
9 Actual costs for the year:
10
11
12
13
14 Inventories:
15
16
17
18
19 Use the data to answer the following.
20
Purchase of raw materials (all direct)
Direct labor cost
Manufacturing overhead costs
Raw materials (all direct)
Work in process
Finished goods
D
E
$ 275,000
25,000
27,760
$375,000
$536,300
$302,750
Beginning
$
15,000 $
11,375
$
27,875 $
22,350
$ 34,600 $ 26,450
Ending
F
21 1. Compute applied overhead and determine the amount of underapplied or overapplied overhead:
22
Actual manufacturing overhead cost
23
Predetermined overhead rate
24
Actual direct labor hours
25
Manufacturing overhead applied
26
27
Underapplied (overapplied) manufacturing overhead
G
H
Transcribed Image Text:A B 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 9 Actual costs for the year: 10 11 12 13 14 Inventories: 15 16 17 18 19 Use the data to answer the following. 20 Purchase of raw materials (all direct) Direct labor cost Manufacturing overhead costs Raw materials (all direct) Work in process Finished goods D E $ 275,000 25,000 27,760 $375,000 $536,300 $302,750 Beginning $ 15,000 $ 11,375 $ 27,875 $ 22,350 $ 34,600 $ 26,450 Ending F 21 1. Compute applied overhead and determine the amount of underapplied or overapplied overhead: 22 Actual manufacturing overhead cost 23 Predetermined overhead rate 24 Actual direct labor hours 25 Manufacturing overhead applied 26 27 Underapplied (overapplied) manufacturing overhead G H
Expert Solution
Step 1 Introduction

The statement of cost of goods manufactured represents the cost of goods that are finished during the period.

The statement of cost of goods sold represents the cost of goods that are sold during the period.

The overhead is applied to the production on the basis of a predetermined overhead rate. The pre-determined overhead rate is calculated as the estimated overhead cost divided by the estimated base activity.

steps

Step by step

Solved in 2 steps

Blurred answer
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question

By chance, do you have the formulas that you used for each answer so i can study it more?

Solution
Bartleby Expert
SEE SOLUTION
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education