Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $111,600 of manufacturing overhead for an estimated allocation base of $93,000 direct material dollars to be used in production. The company has provided the following data for the just completed year: Purchase of raw materials Direct labor cost Hanufacturing overhead costs: Indirect labor Property taxes Depreciation of equipment Maintenance Insurance: Rent, building Raw Materials Work in Process Finished Goods Beginning $ 21,000 $ 48,000 $ 69,000 $ 134,000 $ 89,000 $ 83,800 $8,600 $ 19,000 $ 13,000 $ 10,100 $ 39,000 Ending $ 14,000 $ 40,000 $ 57,000 Required: 1. Compute the predetermined overhead rate for the year 2. Compute the amount of underapplied or overapplied overhead for the year. 3. Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials 4 Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer. 5. Assume that the $40,000 ending balance in Work in Process includes $8,100 of direct materials. Given this assumption, supply the information missing below:
Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $111,600 of manufacturing overhead for an estimated allocation base of $93,000 direct material dollars to be used in production. The company has provided the following data for the just completed year: Purchase of raw materials Direct labor cost Hanufacturing overhead costs: Indirect labor Property taxes Depreciation of equipment Maintenance Insurance: Rent, building Raw Materials Work in Process Finished Goods Beginning $ 21,000 $ 48,000 $ 69,000 $ 134,000 $ 89,000 $ 83,800 $8,600 $ 19,000 $ 13,000 $ 10,100 $ 39,000 Ending $ 14,000 $ 40,000 $ 57,000 Required: 1. Compute the predetermined overhead rate for the year 2. Compute the amount of underapplied or overapplied overhead for the year. 3. Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials 4 Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer. 5. Assume that the $40,000 ending balance in Work in Process includes $8,100 of direct materials. Given this assumption, supply the information missing below:
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 9P: Channel Products Inc. uses the job order cost system of accounting. The following is a list of the...
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
I need all solution please .
Transcribed Image Text:Required:
1. Compute the predetermined overhead rate for the year.
2. Compute the amount of underapplied or overapplied overhead for the year
3. Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials
4. Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer
5. Assume that the $40,000 ending balance in Work in Process includes $8,100 of direct materials. Given this assumption, supply the
information missing below:
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Required 4 Required 5
Assume that the $40,000 ending balance in Work in Process includes $8,100 of direct materials. Given this assumption,
supply the information missing below:
$ 8,100
Direct materials
Direct labor
Manufacturing overhead
Work in process inventory
$ 40.000
Transcribed Image Text:Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in
production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated
$111,600 of manufacturing overhead for an estimated allocation base of $93,000 direct material dollars to be used in production. The
company has provided the following data for the just completed year:
Purchase of raw materials
Direct labor cost
Hanufacturing overhead costs:
Indirect labor
Property taxes
Depreciation of equipment
Maintenance
Insurance
Rent, building
Raw Materials
Work in Process
Finished Goods
Beginning
$ 21,000
$ 48,000
$ 69,000
$ 134,000
$ 89,000
$ 83,800
$8,600
$ 19,000
$ 13,000
$ 10,100
$ 39,000
Ending
$ 14,000
$40,000
$ 57,000
Required:
1. Compute the predetermined overhead rate for the year
2. Compute the amount of underapplied or overapplied overhead for the year.
3. Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials
4 Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer.
5. Assume that the $40,000 ending balance in Work in Process Includes $8,100 of direct materials. Given this assumption, supply the
information missing below:
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,