pealse show me how to figure it out Curtis Inc uses a job order costing system.

Question

pealse show me how to figure it out

Curtis Inc uses a job order costing system. Manufacturing overhead is applied on the basis of direct labor cost. Total manufacturing overhead was estimated to be $52,780 for the year; direct labor was estimated to total $150,800. The following transactions have occurred during the year. Calculate cost of goods manufactured. Calculate the over- or under applied overhead. (Input all amounts as positive value.) Calculate adjusted cost of goods sold. Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $52,800 and its total manufacturing overhead cost to be $95,040. Several incomplete general ledger accounts showing the transactions that occurred during the most recent accounting period follow: Required: 1. Calculate the predetermined overhead rate. Prepare a statement of cost of goods manufactured and sold including the adjustment for over - or under applied overhead. Prepare a brief income statement for the company.

Explanation / Answer

Predetermined overhead rate per hour 180% of Direct Labor cost The schedules of cost of goods manufactured and sold. Direct Material Beginning Raw Material $    13,500 Plus: Net Purchases of Raw Material $    94,400 Less: Indirect Material Used $      8,600 Less: Ending Raw Material $    29,800 Direct Material Used in production $        69,500 Direct Labor $        41,800 Manufacturing Overhead $        75,240 Total Manufacturing Cost $     186,540 Plus:Beginning Work in process Inventory $        29,700 $     216,240 Less: Ending Work in process Inventory $        19,100 Cost of Good Manufactured $     197,140 Plus:Beginning Finished Goods Inventory $        41,200 Cost of Good Available for sale $     238,340 Less: Ending Finished Goods Inventory $        49,100 Unadjusted Cost of Good Sold $     189,240 Adjustment of Overapplied Overhead $        22,540 Adjusted Cost of Good Sold $     166,700 The Income Statement Sales $     319,000 Cost of Good sold $     166,700 Gross Profit $     152,300 Selling , General and Administrative Expenses $        58,900 Net Income $        93,400

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