selected t accounts for rolm company are given below for the just completed year 506749
Aug 29, 2021 | Uncategorized
| Selected T-accounts for Rolm Company are given below for the just completed year: |
| Raw Materials |
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Manufacturing Overhead |
| Bal. 1/1 32,000 |
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Credits? |
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Debits386,000 |
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Credits? |
| Debits 410,000 |
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| Bal. 12/3156,000 |
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| Work in Process |
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Factory Wages Payable |
| Bal. 1/1 72,000 |
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Credits 790,000 |
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Debits 175,000 |
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Bal. 1/114,000 |
| Direct materials324,000 |
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Credits184,000 |
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| Direct labor118,000 |
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Bal. 12/3123,000 |
| Overhead450,000 |
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| Bal. 12/31 ? |
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| Finished Goods |
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Cost of Goods Sold |
| Bal. 1/1 44,000 |
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Credits ? |
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Debits ? |
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| Debits ? |
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| Bal. 12/31 136,000 |
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| Required: |
| 1. |
What was the cost of raw materials put into production during the year? |
| The cost of raw materials |
$ |
| 2. |
How much of the materials in (1) above consisted of indirect materials? |
| 3. |
How much of the factory labor cost for the year consisted of indirect labor? |
| 4. |
What was the cost of goods manufactured for the year? |
| Cost of goods manufactured |
$ |
| 5. |
What was the cost of goods sold for the year (before considering underapplied or overapplied overhead)? |
| 6. |
If overhead is applied to production on the basis of direct materials cost, what predetermined rate was in effect during the year? (Round your answer to 2 decimal places.) |
| The predetermined overhead rate was % of direct materials cost |
| 7. |
Was manufacturing overhead underapplied or overapplied? By how much? (Input the amount as apositive value.) |
| Manufacturing overhead was (Click to select)underappliedoverapplied by $ |
| 8. |
Compute the ending balance in the Work in Process inventory account. Assume that this balance consists entirely of goods started during the year. If $32,600 of this balance is direct materials cost, how much of it is direct labor cost? Manufacturing overhead cost? (Round your predetermined overhead rate percentage and final answers to 2 decimal places.) |
| Ending balance in the work in process |
$ |
| Direct labor cost |
$ |
| Manufacturing overhead cost |
$ |
3.
value:
10.00 points
| The Pacific Manufacturing Company operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. Its predetermined overhead rate was based on a cost formula that estimated $127,400 of manufacturing overhead for an estimated allocation base of $91,000 direct labor dollars. The company has provided the following data: |
| Inventories |
Beginning |
Ending |
| Raw materials |
$ |
23,000 |
$ |
12,000 |
| Work in process |
$ |
50,000 |
$ |
39,000 |
| Finished goods |
$ |
71,000 |
$ |
59,000 |
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| The following actual costs were incurred during the year: |
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| Purchase of raw materials (all direct) |
$ |
132,000 |
| Direct labor cost |
$ |
87,000 |
| Actual manufacturing overhead costs: |
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| Insurance, factory |
$ |
11,400 |
| Depreciation of equipment |
$ |
18,000 |
| Indirect labor |
$ |
33,800 |
| Property taxes |
$ |
8,700 |
| Maintenance |
$ |
15,000 |
| Rent, building |
$ |
38,000 |
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| Required: |
| 1-a. |
Compute the predetermined overhead rate for the year. |
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| Predetermined overhead rate |
% |
| 1-b. |
Compute the amount of underapplied or overapplied overhead for the year. (Input the amount as apositive value.) |
| (Click to select)UnderappliedOverapplied overhead |
$ |
| 2. |
Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials. (Input all amounts as positive values.) |
Pacific Manufacturing Company
Schedule of Cost of Goods Manufactured |
| Direct materials: |
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| (Click to select)Work in process, beginningRaw materials inventory, endingRaw materials inventory, beginningManufacturing overhead applied to work in processWork in process, ending |
$ |
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| (Click to select)DeductAdd: (Click to select)Work in process, beginningRaw materials inventory, endingCost of goods manufacturedWork in process, endingPurchases of raw materials |
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| Total raw materials available |
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| (Click to select)AddDeduct: (Click to select)Work in process, beginningWork in process, endingRaw materials inventory, endingRaw materials inventory, beginningPurchases of raw materials |
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| Raw materials used in production |
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$ |
| (Click to select)Raw materials inventory, endingDirect laborWork in process, endingWork in process, beginningPurchases of raw materials |
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| (Click to select)Manufacturing overhead applied to work in processWork in process, endingPurchases of raw materialsWork in process, beginningRaw materials inventory, ending |
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| Total manufacturing cost |
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| (Click to select)AddDeduct: (Click to select)Raw materials inventory endingWork in process, beginningPurchases of raw materialsRaw materials inventory, beginningWork in process, ending |
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| (Click to select)DeductAdd: (Click to select)Work in process, beginningWork in process, endingRaw materials inventory, beginningRaw materials inventory, endingPurchases of raw materials |
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| Cost of goods manufactured |
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$ |
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| 3. |
Compute the unadjusted cost of goods sold for the year. (Do not include any underapplied or overapplied overhead in your cost of goods sold figure.) |
| Unadjusted cost of goods sold |
$ |
| 4. |
Job 137 was started and completed during the year. What price would have been charged to the customer if the job required $4,000 in materials and $4,300 in direct labor cost, and the company priced its jobs at 40% above the job’s cost according to the accounting system? |
| 5. |
Direct labor made up $8,500 of the $39,000 ending Work in Process inventory balance. Supply the information missing below: |
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| Direct materials |
$ |
| Direct labor |
8,500 |
| Manufacturing overhead |
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| Work in process inventory |
$ 39,000 |
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3-problem.docx