
Concept explainers
How do I find: direct materials, direct labor, and manufacturing
Assume that the $40,000 ending balance in Work in Process includes $9,000 of direct materials. Given this assumption, supply the information missing below:
Gitano Products operates a
Purchase of raw materials $ 133,000
Direct labor cost $ 82,000
Manufacturing overhead costs:
Indirect labor $ 118,600
Property taxes $ 8,000
Depreciation of equipment $ 18,000
Maintenance $ 15,000
Insurance $ 9,700
Rent, building $ 39,000
Beginning Ending
Raw Materials $ 26,000 $ 13,000
Work in Process $ 44,000 $ 40,000
Finished Goods $ 71,000 $ 60,000

Trending nowThis is a popular solution!
Step by stepSolved in 2 steps

- Ahlhelm Corporation has two production departments, Forming and Assembly. The company uses a Job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine- hours and the Assembly Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour During the current month the company started and finished Job T924. The following data were recorded for this Job: Job T924: Machine-hours Direct labor-hours Direct materials Direct labor cost Multiple Choice $55,200 $27,000 The estimated total manufacturing overhead for the Assembly Department is closest to: $47,700 Forming 70 30 $870 $630 $82,200 Assembly 20 40 Forming…arrow_forwardManufacturing cost data for Sandhill Company, which uses a job order cast system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same. (Round overhead rate to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, eg. 5,275.) Work in process 1/1/22 Direct materials used Direct labor Manufacturing overhead applied Total manufacturing costs Total cost of work in process Work in process 12/31/22 Cost of goods manufactured Case A 49,000 41,650 142,737 197,470 188,454 (2) 3 D Case B $15,190 $81,340 137,200 11,564 (d) 3 Sarrow_forwardManufacturing cost data for Oriole Company, which uses a job order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same. (Round overhead rate to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 5,275.) Work in process 1/1/22 Direct materials used Direct labor Manufacturing overhead applied Total manufacturing costs Total cost of work in process Work in process 12/31/22 Cost of goods manufactured $ Case A 55,000 44,000 160,215 221,650 211,530 (a) (b) (c) Case B $17,050 $91,300 154,000 12,980 (d) (e) (f) (g)arrow_forward
- Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Required: 1. Compute the plantwide predetermined overhead rate. 2. During the year, Job 400 was started and completed. The following information pertains to this job: Direct materials Direct labor cost Machine-hours used $ 390 $ 240 34 Compute the total manufacturing cost assigned to Job 400. 3. If Job 400 includes 60 units, what is its unit product cost? 4. If Moody uses a markup percentage of 130% of its total manufacturing cost, then what selling price per unit would it establish for Job 400? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the plantwide predetermined overhead rate.…arrow_forwardsarrow_forwardGitano Products uses job-order costing and applies overhead cost to jobs based on direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate is based on a cost formula that estimated $129,000 of manufacturing overhead for an estimated allocation base of $86,000 direct material dollars to be used in production. The company provided the following data for the just completed year: Purchase of raw materials Direct labor cost Manufacturing overhead costs: Indirect labor Property taxes Depreciation of equipment Maintenance Insurance Rent, building Raw Materials Work in Process Finished Goods Required: Beginning $ 28,000 $ 45,000 $ 71,000 $ 131,000 $82,000 $ 140,000 $ 8,400 $ 16,000 $ 11,000 $ 10,000 $ 38,000 Ending $ 13,000 $ 35,000 $ 58,000 1. Compute the predetermined overhead rate. 2. Compute the amount of underapplied or overapplied overhead. 3. Prepare a schedule of cost of goods manufactured. Assume all raw materials are used in…arrow_forward
- Hanshabenarrow_forwardComputing Total Job Costs and Unit Product Costs Using a Plantwide Predetermined Overhead Rate Mickley Company’s plantwide predetermined overhead rate is $14.00 per direct labor-hour and its direct labor wage rate is $ 17.00 per hour. The following information pertains to Job A-500: Required: 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 40 units, what is the unit product cost for this job?arrow_forwardBaja Industries has recently switched its method of applying manufacturing overhead from a single predetermined overhead rate based on direct labor hours to activity-based costing (ABC). Assume that the direct labor rate is $18.00 per hour and that there were no beginning inventories. The following cost drivers and rates have been developed for allocating manufacturing overhead costs: Activity Cost Driver Rate Material handling Number of parts used $ 2.00 per part Assembly and inspection Number of direct labor hours $25.00 per DLH Testing Number of units tested $ 5.00 per unitThe following production, costs, and activities occurred during the month of August: Direct…arrow_forward
- Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on machine hours to allocate manufacturing overhead to jobs. Selected data about the company's operations follows: Actual manufacturing overhead cost $500,000 Estimated manufacturing overhead cost $550,000 Estimated direct labor cost $175,800 Estimated direct labor hours 50,500 Actual direct labor hours 60,700 Estimated machine hours 40,600 Actual machine hours 35,800 By how much was manufacturing overhead overallocated or underallocated for the year? (Round intermediary calculations to the nearest cent.)arrow_forwardSporty Manufacturing Co. assembled the following cost data for job #26: (Click the icon to view the cost data.) What are the total manufacturing costs for job #26 if the company uses normal job costing? A. $209,100 B. $207,400 C. $209,700 D. $205,900 Cost Data Direct manufacturing labor Indirect manufacturing labor Equipment depreciation Other indirect manufacturing costs Direct materials Indirect materials Manufacturing overhead overapplied $ 100,000 17,000 600 1,000 85,000 3,800 2,300 Xarrow_forwardThe Goods in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $7,200 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $3,400 and direct labor cost of $1,150. What is the company's overhead application rate?arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





