Answered: Other information: 1. Direct materials… | bartleby

Other information: 1. Direct materials and direct labour added to beginning work in process in October were as follows: Job 22 Job 24 Job 25 Total Direct materials $1,150 $610 $1,500 $3,260 Direct labour 3,000 4,500 5,500 13,000 2. Overhead is applied at a predetermined rate based on the direct labour cost. 3. Actual expenses for October were as follows: Supervisory salaries $6,000 Supplies (factory) $2,100 Factory rent 5,000 Selling expenses 8,500 Depreciation (machines) 5,000 Property tax and insurance 2,250 Indirect labour 4,000 CPP, EI, and other benefits" 4,200 * 80% of employer contributions and benefits relate to factory personnel. 4. Purchases of direct materials (raw materials) during October amounted to $28,500. Indirect materials (supplies) are handle in a separate account. 5. Only Jobs 27 and 28 are still in process at closing on October 31. Finished goods consisted only of Job No. 25 at month end. 6. Avid writes off any under- and over-applied overhead to Cost of Goods Sold in the month in which it is incurred. (a) Calculate the predetermined overhead rate used by Avid to apply overhead to jobs. Predetermined overhead rate % di

College Accounting, Chapters 1-27

College Accounting, Chapters 1-27

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Chapter26: Manufacturing Accounting: The Job Order Cost System

Section: Chapter Questions

Problem 2SEA: SCHEDULE OF COST OF GOODS MANUFACTURED The following information is supplied for Maupin...

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Other information:
1.
Direct materials and direct labour added to beginning work in process in October were as follows:
Job 25
Job 22 Job 24
$610
Total
$3,260
Direct materials
$1,150
$1,500
Direct labour
3,000 4,500
5,500 13,000
2.
Overhead is applied at a predetermined rate based on the direct labour cost.
3.
Actual expenses for October were as follows:
$6.000
Supplies (factory)
$2,100
Supervisory salaries
Factory rent
Depreciation (machines)
Selling expenses
8,500
5,000
5,000
Property tax and insurance
2,250
Indirect labour
4.000
CPP, EI, and other benefits*
4,200
* 80% of employer contributions and benefits relate to factory personnel.
4.
Purchases of direct materials (raw materials) during October amounted to $28,500. Indirect materials (supplies) are handled
in a separate account.
5.
Only Jobs 27 and 28 are still in process at closing on October 31. Finished goods consisted only of Job No. 25 at month end.
6.
Avid writes off any under- and over-applied overhead to Cost of Goods Sold in the month in which it is incurred.
(a)
Calculate the predetermined overhead rate used by Avid to apply overhead to jobs.
Predetermined overhead rate
%
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Raw materials
$9.800
Work in process
65,847
Finished goods
30,640
Work in process consisted of the following jobs:
Job 22
Job 24
Job 25
$4,800
Direct materials
$6,200
Direct labour
$5,190
9,210
6,447
10,500
7,350
9,500
Applied overhead
6,650
Total
$24,050
$20,847 $20,950
Number of units
20
40
30
Finished goods consisted of Job 23, with the following costs:
Job 23
Direct materials
$8,200
Direct labour
13,200
Applied overhead
9,240
Total
$30,640
50
Number of units
Shown below are the direct cost data related to jobs started in October:
Direct materials
Job 26
$5,180
$11,200
Job 27 Job 28
$5,600 $4,200
$9,340 $5,910
Total
$14,980
$26,450
Direct labour
Number of units
20
30
20

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SCHEDULE OF COST OF GOODS MANUFACTURED The following information is supplied for Sanchez Welding and Manufacturing Company. Prepare a schedule of cost of goods manufactured for the year ended December 31, 20--. Assume that all materials inventory items are direct materials. Work in process, January 1 20,500 Materials inventory, January 1 11,000 Materials purchases 12,000 Materials inventory, December 31 13,000 Direct labor 9,500 Overhead 5,500 Work in process, December 31 10,500
SCHEDULE OF COST OF GOODS MANUFACTURED The following information is supplied for Maupin Manufacturing Company. Prepare a schedule of cost of goods manufactured for the year ended December 31, 20--. Assume that all materials inventory items are direct materials. Work in process, January 1 77,000 Materials inventory, January 1 31,000 Materials purchases 35,000 Materials inventory, December 31 26,000 Direct labor 48,000 Overhead 20,000 Work in process, December 31 62,000
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