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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 $237,500 and total machine hours at 62,500. 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 Direct labor Machine hours Job 101 $ 11,600 $ 18,000 1,700 hours Job 182 $ 8,100 $ 5,700 2,700 hours Job 101 $ 5,500 $ 5,100 1,100 hours Job 101 was completed and sold for $50,400. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $19,800. Total $ 25,200 $ 28,800 5,500 hours 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.

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 $237,500 and total machine hours at 62,500. 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 Direct labor Machine hours Job 101 $ 11,600 $ 18,000 1,700 hours Job 182 $ 8,100 $ 5,700 2,700 hours Job 101 $ 5,500 $ 5,100 1,100 hours Job 101 was completed and sold for $50,400. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $19,800. Total $ 25,200 $ 28,800 5,500 hours 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 $237,500 and total machine hours at 62,500. 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 Direct labor Machine hours Job 1011 $ 11,600 $ 18,000 1,700 hours 1. Predetermined Overhead Rate 2. Total Applied Manufacturing Overhead 3. Ending Work in Process Inventory 4. Gross profit Job 102 $ 8,100 $ 5,700 5-a. Balance 5-b. Is it over- or underapplied? 2,700 hours Job 103 $5,500 $ 5,100 Job 101 was completed and sold for $50,400. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $19,800. 1,100 hours Total 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. $ 25,200 $ 28,800 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? 5,500 hours 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? per machine hour
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 $237,500 and total machine hours at 62,500. 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 Direct labor Machine hours Job 1011 $ 11,600 $ 18,000 1,700 hours 1. Predetermined Overhead Rate 2. Total Applied Manufacturing Overhead 3. Ending Work in Process Inventory 4. Gross profit Job 102 $ 8,100 $ 5,700 5-a. Balance 5-b. Is it over- or underapplied? 2,700 hours Job 103 $5,500 $ 5,100 Job 101 was completed and sold for $50,400. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $19,800. 1,100 hours Total 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. $ 25,200 $ 28,800 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? 5,500 hours 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? per machine hour
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