Exercise 13-14 Product costing-manufacturing overhead LO 5 Required: a, Calculat

Question

Exercise 13-14 Product costing-manufacturing overhead LO 5 Required: a, Calculate the will be used for absorption costing purposes during 2016 (Round your answer to2 decimal places.) b. During Apnil, 3,100 hats were made. Raw materials Apnil. Caiculate the cost per hat made during Apri. (Do not round intermediate calculations. Round your answer to 2 decimal places.) costing $6,410 were used, and direct labor costs totaled $9,480. A total of 720 machine hours were worked during the month of c. At the end of April, 1,430 hats were in ending inventory. Calculate the oost of the ending inventory and the cost of the hats soid during April (Do not round Round your answers to 2 decimal places.) 7:14 PM ^ 11/26/2017 O Type here to search

Explanation / Answer

A. Predetermined overhead rate:

= $368,490(estimated total overhead cost)/ 26,630 (estimated machine hours)

=$13.84 per machine hour

B.

Total cost for 3100 hats produced:

Raw material=$6,410

Direct labour=$9,480

Overhead(720 MH × $13.84)=$9,964.80

Total manufacturing cost=$25,854.80

Cost per hat produced=25854.80/3100

=$8.34 per hat

C.

Cost of hats in inventory=1430 hats ×$8.34 per hat=$11,926.20

Cost of hats sold=(3100-1430)×$8.34 per hat= $13,927.80

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