Homework Help is Here – Start Your Trial Now!
Business
Accounting
Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $248,000 and total machine hours at 62,000. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Direct materials used Job 101 $ 10,900 Job 102 $ 7,700 Job 103 Total $ 5,100 $ 23,700 Direct labor $ 17,700 Machine hours 1,300 hours $ 6,800 2,400 hours $ 5,800 600 hours $ 30,300 4,300 hours Job 101 was completed and sold for $50,100. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $15,800. Required: 1. Calculate the predetermined overhead rate. Note: Round your answer to 2 decimal places. 2. Compute the total manufacturing overhead applied to the Work in Process Inventory account during the first month of operations. Note: Round your Intermediate calculations to 2 decimal places. 3. Compute the balance in the Work In Process Inventory account at the end of the first month. Note: Round your Intermediate calculations to 2 decimal places. 4. How much gross profit would the company report during the first month of operations before making an adjustment for over-or underapplied manufacturing overhead? Note: Round your Intermediate calculations to 2 decimal places. 5-a. Determine the balance in the Manufacturing Overhead account at the end of the first month. Note: Round your Intermediate calculations to 2 decimal places. 5-b. Is it over- or underapplied? Answer is complete but not entirely correct. 1. Predetermined Overhead Rate $ 3.20 per machine hour 2. Total Applied Manufacturing Overhead $ 13,740 x 3. Ending Work in Process Inventory $ 12,820x 4. Gross profit 5-a. Balance 5-b. Is it over- or underapplied? $ 17,340 $ 2,040 Overapplied

Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $248,000 and total machine hours at 62,000. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Direct materials used Job 101 $ 10,900 Job 102 $ 7,700 Job 103 Total $ 5,100 $ 23,700 Direct labor $ 17,700 Machine hours 1,300 hours $ 6,800 2,400 hours $ 5,800 600 hours $ 30,300 4,300 hours Job 101 was completed and sold for $50,100. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $15,800. Required: 1. Calculate the predetermined overhead rate. Note: Round your answer to 2 decimal places. 2. Compute the total manufacturing overhead applied to the Work in Process Inventory account during the first month of operations. Note: Round your Intermediate calculations to 2 decimal places. 3. Compute the balance in the Work In Process Inventory account at the end of the first month. Note: Round your Intermediate calculations to 2 decimal places. 4. How much gross profit would the company report during the first month of operations before making an adjustment for over-or underapplied manufacturing overhead? Note: Round your Intermediate calculations to 2 decimal places. 5-a. Determine the balance in the Manufacturing Overhead account at the end of the first month. Note: Round your Intermediate calculations to 2 decimal places. 5-b. Is it over- or underapplied? Answer is complete but not entirely correct. 1. Predetermined Overhead Rate $ 3.20 per machine hour 2. Total Applied Manufacturing Overhead $ 13,740 x 3. Ending Work in Process Inventory $ 12,820x 4. Gross profit 5-a. Balance 5-b. Is it over- or underapplied? $ 17,340 $ 2,040 Overapplied

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 4BE: Applying factory overhead Bergan Company estimates that total factory overhead costs will be 620,000...
See similar textbooks
icon
Related questions
Question
None
Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $248,000 and total machine hours at 62,000. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Direct materials used Job 101 $ 10,900 Job 102 $ 7,700 Job 103 Total $ 5,100 $ 23,700 Direct labor $ 17,700 Machine hours 1,300 hours $ 6,800 2,400 hours $ 5,800 600 hours $ 30,300 4,300 hours Job 101 was completed and sold for $50,100. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $15,800. Required: 1. Calculate the predetermined overhead rate. Note: Round your answer to 2 decimal places. 2. Compute the total manufacturing overhead applied to the Work in Process Inventory account during the first month of operations. Note: Round your Intermediate calculations to 2 decimal places. 3. Compute the balance in the Work In Process Inventory account at the end of the first month. Note: Round your Intermediate calculations to 2 decimal places. 4. How much gross profit would the company report during the first month of operations before making an adjustment for over-or underapplied manufacturing overhead? Note: Round your Intermediate calculations to 2 decimal places. 5-a. Determine the balance in the Manufacturing Overhead account at the end of the first month. Note: Round your Intermediate calculations to 2 decimal places. 5-b. Is it over- or underapplied? Answer is complete but not entirely correct. 1. Predetermined Overhead Rate $ 3.20 per machine hour 2. Total Applied Manufacturing Overhead $ 13,740 x 3. Ending Work in Process Inventory $ 12,820x 4. Gross profit 5-a. Balance 5-b. Is it over- or underapplied? $ 17,340 $ 2,040 Overapplied
Transcribed Image Text:Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $248,000 and total machine hours at 62,000. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Direct materials used Job 101 $ 10,900 Job 102 $ 7,700 Job 103 Total $ 5,100 $ 23,700 Direct labor $ 17,700 Machine hours 1,300 hours $ 6,800 2,400 hours $ 5,800 600 hours $ 30,300 4,300 hours Job 101 was completed and sold for $50,100. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $15,800. Required: 1. Calculate the predetermined overhead rate. Note: Round your answer to 2 decimal places. 2. Compute the total manufacturing overhead applied to the Work in Process Inventory account during the first month of operations. Note: Round your Intermediate calculations to 2 decimal places. 3. Compute the balance in the Work In Process Inventory account at the end of the first month. Note: Round your Intermediate calculations to 2 decimal places. 4. How much gross profit would the company report during the first month of operations before making an adjustment for over-or underapplied manufacturing overhead? Note: Round your Intermediate calculations to 2 decimal places. 5-a. Determine the balance in the Manufacturing Overhead account at the end of the first month. Note: Round your Intermediate calculations to 2 decimal places. 5-b. Is it over- or underapplied? Answer is complete but not entirely correct. 1. Predetermined Overhead Rate $ 3.20 per machine hour 2. Total Applied Manufacturing Overhead $ 13,740 x 3. Ending Work in Process Inventory $ 12,820x 4. Gross profit 5-a. Balance 5-b. Is it over- or underapplied? $ 17,340 $ 2,040 Overapplied
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
College Accounting, Chapters 1-27 (New in Account…
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS