Test Chapters 14 &15 Section IIl Use the following information to V2 information
ID: 2328977 • Letter: T
Question
Test Chapters 14 &15 Section IIl Use the following information to V2 information to compute the items A thru E below Factory repairs and maintenance Ending raw materials ars and m $3,300 4,200 Direct labor Raw material purchases Depreciation on factory equipment 17,250 7.400 6,750 5,600 10,800 raw materials Beginning finished goods inventory Ending finished goods inventory Beginning goods in process inventory Ending goods in process inventory OH application rate 8,900 5,350 6,300 60% of DL A. Calculate the cost of materials used B. Calculate the manufacturing costs incurred during the period. C. Calculate the Cost of Goods Manufactured during the period D. Calculate the Cost of Goods Sold during the period E. Calculate the amount by which overhead is under-or overappliedExplanation / Answer
Answer A.
Cost of materials used = Beginning raw materials + Raw material purchases - Ending raw materials
Cost of materials used = $5,600 + $7,400 - $4,200
Cost of materials used = $8,800
Answer B.
Manufacturing overhead = Factory repairs and maintenance + Depreciation on factory equipment
Manufacturing overhead = $3,300 + $6,750
Manufacturing overhead = $10,050
Manufacturing costs = Cost of materials used + Direct labor + Manufacturing overhead
Manufacturing costs = $8,800 + $17,250 + $10,050
Manufacturing costs = $36,100
Answer C.
Cost of goods manufactured = Beginning goods in process inventory + Manufacturing costs - Ending goods in process inventory
Cost of goods manufactured = $5,350 + $36,100 - $6,300
Cost of goods manufactured = $35,150
Answer D.
Cost of goods sold = Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory
Cost of goods sold = $10,800 + $35,150 - $8,900
Cost of goods sold = $37,050
Answer E.
Manufacturing overhead applied = 60% * Direct labor
Manufacturing overhead applied = 60% * $17,250
Manufacturing overhead applied = $10,350
Over-applied overhead = Manufacturing overhead applied - Manufacturing overhead incurred
Over-applied overhead = $10,350 - $10,050
Over-applied overhead = $300
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