Info in imagesContinued info for question1. Compute the predetermined overhead rate for the year. Predetermined overhead rate[ ]%2. Compute the amount of underapplied or overapplied overhead for the year. [Underapplied OR Overapplied]overhead[ ]3. Info in image "ACC REQ3"4. Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer. Unadjusted cost of goods sold[ ]5. Assume that the $38,000 ending balance in Work in Process includes $8,600 of direct materials. Given this assumption, supply the information missing below: Direct materials$8,600Direct labor[ ]Manufacturing overhead[ ]Work in process inventory$38,000 Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used inproduction (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated$127,400 of manufacturing overhead for an estimated allocation base of $91,000 direct material dollars to be used in production. Thecompany has provided the following data for the just completed year:Purchase of raw materials$ 130,000Direct labor costManufacturing overhead costs:$87,000Indirect labor$ 108,000Property taxesDepreciation of equipment$8,900$20,000Maintenance$412,000Insurance$7,900Rent, building33,000BeginningEndingRaw Materials$21,000 $ 18,000Work in Process$46,000 $ 38,000Finished Goods$ 71,000 $ 58,000Required:1. Compute the predetermined overhead rate for the year.2. Compute the amount of underapplied or overapplied overhead for the year.3. Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials.4. Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer.5. Assume that the $38,000 ending balance in Work in Process includes $8,600 of direct materials. Given this assumption, supply theinformation missing below:Complete this question by entering your answers in the tabs below. Required 1Required 2Required 3Required 4Required 5Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as directmaterials.Gitano ProductsSchedule of Cost of Goods ManufacturedDirect materials:Total raw materials availableDirect materials used in productionTotal manufacturing costs added to productionTotal manufacturing costs to account forCost of goods manufacturedRequired 2Required 4 >

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Answered: Gitano Products operates a job-order…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Info in images

Continued info for question

1. Compute the predetermined overhead rate for the year.

Predetermined overhead rate

[ ]

2. Compute the amount of underapplied or overapplied overhead for the year.

[Underapplied OR Overapplied]

overhead

[ ]

3. Info in image "ACC REQ3"

4. Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer.

Unadjusted cost of goods sold

[ ]

5. Assume that the $38,000 ending balance in Work in Process includes $8,600 of direct materials. Given this assumption, supply the information missing below:


Direct materials	$8,600
Direct labor	[ ]
Manufacturing overhead	[ ]
Work in process inventory	$38,000

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). Its predetermined overhead rate was based on a cost formula that estimated
$127,400 of manufacturing overhead for an estimated allocation base of $91,000 direct material dollars to be used in production. The
company has provided the following data for the just completed year:
Purchase of raw materials
$ 130,000
Direct labor cost
Manufacturing overhead costs:
$
87,000
Indirect labor
$ 108,000
Property taxes
Depreciation of equipment
$
8,900
$
20,000
Maintenance
$4
12,000
Insurance
$
7,900
Rent, building
33,000
Beginning
Ending
Raw Materials
$
21,000 $ 18,000
Work in Process
$
46,000 $ 38,000
Finished Goods
$ 71,000 $ 58,000
Required:
1. Compute the predetermined overhead rate for the year.
2. Compute the amount of underapplied or overapplied overhead for the year.
3. Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials.
4. Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer.
5. Assume that the $38,000 ending balance in Work in Process includes $8,600 of direct materials. Given this assumption, supply the
information missing below:
Complete this question by entering your answers in the tabs below.

Required 1
Required 2
Required 3
Required 4
Required 5
Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct
materials.
Gitano Products
Schedule of Cost of Goods Manufactured
Direct materials:
Total raw materials available
Direct materials used in production
Total manufacturing costs added to production
Total manufacturing costs to account for
Cost of goods manufactured
Required 2
Required 4 >

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