Problem 3-14 Schedule of Cost of Goods Manufactured; Overhead Analysis [LO3-3, LO3-4] 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). Its predetermined overhead rate was based on a cost formula that estimated $119,600 of manufacturing overhead for an estimated allocation base of $92,000 direct material dollars to be used in production. The company has provided the following data for the just completed year: $ 134,000 88,000 Purchase of raw materials Direct labor cost Manufacturing overhead costs: Indirect labor $ 111,700 8,200 16,000 16,000 7,700 37,000 Property taxes Depreciation of equipment Maintenance Insurance Rent, building Ending Beginning $ 29,000 $ 15,000 $ 46,000 $ 36,000 $ 74,000 $ 57,000 Raw Materials Work in Process Finished Goods 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 $36,000 ending balance in Work in Process includes $8,200 of direct materials. Given this assumption, supply the information missing below:
Problem 3-14 Schedule of Cost of Goods Manufactured; Overhead Analysis [LO3-3, LO3-4] 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). Its predetermined overhead rate was based on a cost formula that estimated $119,600 of manufacturing overhead for an estimated allocation base of $92,000 direct material dollars to be used in production. The company has provided the following data for the just completed year: $ 134,000 88,000 Purchase of raw materials Direct labor cost Manufacturing overhead costs: Indirect labor $ 111,700 8,200 16,000 16,000 7,700 37,000 Property taxes Depreciation of equipment Maintenance Insurance Rent, building Ending Beginning $ 29,000 $ 15,000 $ 46,000 $ 36,000 $ 74,000 $ 57,000 Raw Materials Work in Process Finished Goods 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 $36,000 ending balance in Work in Process includes $8,200 of direct materials. Given this assumption, supply the information missing below:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please help with questions 4-5
![Problem 3-14 Schedule of Cost of Goods Manufactured; Overhead Analysis [LO3-3, LO3-4]
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). Its predetermined overhead rate was based on a cost formula that estimated
$119,600 of manufacturing overhead for an estimated allocation base of $92,000 direct material dollars to be used in production. The
company has provided the following data for the just completed year:
$ 134,000
88,000
Purchase of raw materials
Direct labor cost
Manufacturing overhead costs:
Indirect labor
$ 111,700
8,200
16,000
16,000
7,700
37,000
Property taxes
Depreciation of equipment
Maintenance
Insurance
Rent, building
Ending
Beginning
$ 29,000 $ 15,000
$ 46,000 $ 36,000
$ 74,000 $ 57,000
Raw Materials
Work in Process
Finished Goods
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 $36,000 ending balance in Work in Process includes $8,200 of direct materials. Given this assumption, supply the
information missing below:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8aeb4c9c-8d33-4b47-954d-a4d3ce02aa40%2Fb59dd8da-4ebe-4bbe-a2df-c396ef77f8b3%2Fv2sxkxs.png&w=3840&q=75)
Transcribed Image Text:Problem 3-14 Schedule of Cost of Goods Manufactured; Overhead Analysis [LO3-3, LO3-4]
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). Its predetermined overhead rate was based on a cost formula that estimated
$119,600 of manufacturing overhead for an estimated allocation base of $92,000 direct material dollars to be used in production. The
company has provided the following data for the just completed year:
$ 134,000
88,000
Purchase of raw materials
Direct labor cost
Manufacturing overhead costs:
Indirect labor
$ 111,700
8,200
16,000
16,000
7,700
37,000
Property taxes
Depreciation of equipment
Maintenance
Insurance
Rent, building
Ending
Beginning
$ 29,000 $ 15,000
$ 46,000 $ 36,000
$ 74,000 $ 57,000
Raw Materials
Work in Process
Finished Goods
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 $36,000 ending balance in Work in Process includes $8,200 of direct materials. Given this assumption, supply the
information missing below:
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