.11 Sprint 6:04 PM Done 11 of 11 k-help/questions and-answers/llwing-account-bal
ID: 2541054 • Letter: #
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.11 Sprint 6:04 PM Done 11 of 11 k-help/questions and-answers/llwing-account-balances-beginning janary selected-genersl-ledger cea-city The following account balances at the beginning off Jauary were selected om the general ledger of Ocean City Manulacturing Company, Work in process inventory S0 Raw materials inventory 528.000 Finished goods inventory $40,000 Addisional datx: 1) actual manufacturing overhead for January amounted to 562000 2) Total direct labor cost for januray was 963,000 30 The predetermined manufacturing overhead is baed on direct cost. The budget for the year caled for $350 000 of dinect aor cos nd 5350,000of manufacturing overhead costs 41 The only job unlinished on January 31 was Job. 15t for which total dinect labor charges were $5.200 800 direct labor houes) and sotal direct mateia charges w re $14,005) Cost of drect materials placed in production during January totaled $123,000. Ther, were noindrect material ompnroes d ng larary Janury 31 b. ane·n raw munnat r_ory was S35.000 Feeshed goods mentory balance on January 3: was susoo what is the cost of goods sold for Janury A5334.200 B. 5236 500 C $253220 Has mandfactuing overhead been overallocahed or undoraocaled and by what amount as of January 31? A. 517,000 underallocated B. S17,000 overallocated C 526,200 underalliocated D 526,200 overallocated Get this answer with Chegg Study Best answer The folowing account belar Company Work in processi VIEW THIS ANSWER Ocean Clty Manlacturing 40,000 Additional data 1 4 ]Explanation / Answer
Cost of goods sold for January: Analysis of work-in-process account: Beginning balance 0 Add: Cost of direct materials 123000 Direct labor cost 63000 Manufacturing overhead (Note:1) 88200 274200 Less: Ending balance (Note:2) 26480 Cost transferred to finished goods 247720 Analysis of Finished goods account: Beginning balance 40000 Add: Cost transferred from work in process 247720 287720 Less: Ending balance 34500 Cost of goods sold 253220 Answer is option C. Notes: 1. Allocation of manufacturing overhead Predetermined overhead rate=Budgeted manufacturing overhead/Budgeted direct labor cost=350000/250000=$1.4 per direct labor cost Actual direct labor cost=63000 Allocated manufacturing overhead=63000*1.4=88200 2. Ending balance of work in process=Cost of unfinished jobs (Job 151) Cost of Job 151: Materials 14000 Labor 5200 Overhead (5200*1.4) 7280 Total cost 26480 Over/Under allocation of manufacturing overhead: Actual manufacturing overhead=62000 Allocated manufacturing overhead=88200 Over allocated manufacturing overhead=88200-62000=$26200 overallocated Answer is option D.
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