Balance Sheet and Direct Labor

2959 WordsDec 23, 201312 Pages
Problem 1-7A (75 minutes) Part 1 DE LEON COMPANY Manufacturing Statement For Year Ended December 31, 2013 Direct materials Raw materials inventory, December 31, 2012 $ 166,850 Raw materials purchases 925,000 Raw materials available for use 1,091,850 Less raw materials inventory, December 31, 2013 182,000 Direct materials used $ 909,850 Direct labor 675,480 Factory overhead Depreciation expense—Factory equipment 33,550 Factory supervision 102,600 Factory supplies used 7,350 Factory utilities 33,000 Indirect labor 56,875 Miscellaneous production costs 8,425 Rent expense—Factory building 76,800 Maintenance…show more content…
Note that the company carries fewer days’ supply (25.3 days) in its finished goods inventory. Problem 2-4B (35 minutes) Part 1 a. Predetermined overhead rate = = = 50% b. Overhead costs charged to jobs Direct Applied Job No. Labor Overhead (50%) 625 $ 354,000 $177,000 626 330,000 165,000 627 175,000 87,500 628 420,000 210,000 629 184,000 92,000 630 10,000 5,000 Total $1,473,000 $736,500 c. Overapplied or underapplied overhead determination Actual overhead cost $725,000 Less applied overhead cost 736,500 Overapplied overhead $ (11,500) Part 2 Dec. 31 Factory Overhead 11,500 Cost of Goods Sold 11,500 To assign overapplied overhead. Problem 3-1A (45 minutes) Part 1: Cost of goods transferred and cost of goods sold Beginning goods in process inventory $ 435,000 Direct materials used in production 157,500 Direct labor used in production 780,000 Overhead applied (115% of direct labor cost) 897,000 Total production costs 2,269,500 Less ending goods in process inventory (515,000) Transferred to finished goods inventory (a) $1,754,500 Beginning finished goods inventory $ 633,000 Plus goods transferred from production 1,754,500 Goods available for sale 2,387,500 Less ending finished

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