Question 2.4 Raptor Company reported the following actual costs data for the year: Purchase of raw materials (all direct) $200,000 Direct labour (average hourly rate of $25) 400,000 Manufacturing overhead costs 100,000 Change in inventories: Increase in raw materials $25,000 Increase in work in process 16,000 Increase in finished goods 30,000 Raptor Company used a predetermined overhead rate based on direct labour hours. Estimated annual manufacturing overhead cost and direct labour hours were $150,000 and 20,000, respectively. Required: What was the pre-determined manufacturing overhead rate? Calculate the cost of goods manufactured. What was the cost of goods sold before adjusting for any under or overapplied overhead?
Question 2.4 Raptor Company reported the following actual costs data for the year: Purchase of raw materials (all direct) $200,000 Direct labour (average hourly rate of $25) 400,000 Manufacturing overhead costs 100,000 Change in inventories: Increase in raw materials $25,000 Increase in work in process 16,000 Increase in finished goods 30,000 Raptor Company used a predetermined overhead rate based on direct labour hours. Estimated annual manufacturing overhead cost and direct labour hours were $150,000 and 20,000, respectively. Required: What was the pre-determined manufacturing overhead rate? Calculate the cost of goods manufactured. What was the cost of goods sold before adjusting for any under or overapplied overhead?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 2.4
Raptor Company reported the following actual costs data for the year:
|
Purchase of raw materials (all direct) |
$200,000 |
|
Direct labour (average hourly rate of $25) |
400,000 |
|
Manufacturing |
100,000 |
|
Change in inventories: |
|
|
Increase in raw materials |
$25,000 |
|
Increase in work in process |
16,000 |
|
Increase in finished goods |
30,000 |
Raptor Company used a predetermined overhead rate based on direct labour hours. Estimated annual
Required:
- What was the pre-determined manufacturing overhead rate?
- Calculate the cost of goods manufactured.
- What was the cost of goods sold before adjusting for any under or overapplied overhead?
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