Product costing-various issues Clay Co. produces ceramic coffee mugs and pencil holders. Manufacturing overhead is assigned to production using an application rate based on direct labor hours. Exe LO Required: a. For 2013, the company's cost accountant estimated that total overhead costs incurred would be $420,000 and that a total of 50,000 direct labor hours would be worked. Calculate the amount of overhead to be applied for each direct labor hour worked on a production run. b. A production run of 400 coffee mugs used raw materials that cost $432 and used 40 direct labor hours at a cost of $10 per hour. Calculate the cost of each coffee mug produced. At the end of October 2013, 280 coffee mugs made in the production run in part b had been sold and the rest were in ending inventory. Calculate (1) the cost of the coffee mugs sold that would have been reported in the income statement and (2) the cost included in the October 31, 2013, finished goods inventory. с. tigol Accessories, Inc.,

Product costing-various issues Clay Co. produces ceramic coffee mugs and pencil holders. Manufacturing overhead is assigned to production using an application rate based on direct labor hours. Exe LO Required: a. For 2013, the company's cost accountant estimated that total overhead costs incurred would be $420,000 and that a total of 50,000 direct labor hours would be worked. Calculate the amount of overhead to be applied for each direct labor hour worked on a production run. b. A production run of 400 coffee mugs used raw materials that cost $432 and used 40 direct labor hours at a cost of $10 per hour. Calculate the cost of each coffee mug produced. At the end of October 2013, 280 coffee mugs made in the production run in part b had been sold and the rest were in ending inventory. Calculate (1) the cost of the coffee mugs sold that would have been reported in the income statement and (2) the cost included in the October 31, 2013, finished goods inventory. с. tigol Accessories, Inc.,

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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Archer Company produces leather jacket for individual and corporation. On September 1st 2016, three jobs are in process, with cost as follows in USD attached on picture below Questions : a. If the allocation base that the company use is direct materials, calculate the budgeted overhead rate b. Calculate the Manufacturing Overhead Cost for each job and the total of MOH allowed c. Calculate the total cost of WIP at the end of September 2016
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Hartley Uniforms produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Hartley Uniforms reports the following cost data for the past year: E (Click the icon to view the cost data.) Read the requirements. Data table Requirement 1. Compute the predetermined manufacturing overhead rate. Enter the formula for predetermined manufacturing overhead rate, then compute the rate. Budget Actual Estimated yearly overhead costs Estimated yearly machine hours Predetermined overhead rate Direct labor hours. 7,600 hours 6,100 hours 194,400 7,200 $ 27 per machine hour Machine hours. 7,200 hours 6,300 hours Requirement 2. Calculate the allocated manufacturing overhead for the past year. Depreciation on salespeople's autos 23,000 $ 23,000 Indirect materials.. $ 48,500 $ 50,500 Manufacturing Depreciation on trucks used to deliver uniforms to customers $ 13,000 $ 11,000 Actual machine hours Predetermined overhead rate overhead allocated Depreciation on…
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