Major Assignment ACFI2003 - Question 1 1a. Direct material...

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Question 11a.Working:a.Direct labour paid= $18/hourDirect labour hours worked in year 2 = 2,500Direct labour cost= $18 x 2,500 = $45,000b.Direct labour paid= $18/hourDirect labour hours worked in year 2 = 3,200Direct labour cost= $18 x 3,200= $57,600c.Predetermine rate= $135Direct labour hours worked in year 2 = 2,500Work-In-Process= $135 x 2,500 = $337,500d.Predetermine rate= $135Direct labour hours worked in year 2 = 3,200Work-In-Process= $135 x 3,200 = $432,0001b.Working:a.Direct labour paid= $18/hourDirect labour hours worked in year 3 = 300Total direct labour= $18 x 300 = $5400b.Predetermine overhead rate=ManufacturingoverheadActualdirect Labour hours=$7,531,50055,000AB20AB25Direct material cost$275,000$496,000Direct labour cost$45,000a$57,600bManufacturing overhead$337,500c$432,000dBeginning balance657,500985,600Job AB25Beginning Inventory$985,600Direct MaterialInventory58,000Direct Labour5,400aOverhead Applied41,082bTotal Cost$1,090,082
Predetermine overhead rate= $136.94Direct labour hours worked in year 3 = 300Overhead Applied Cost= $136.94 x 300 = $41,0821c.Predetermine overhead rate= $136.94Actual Labour hours= 74,000Applied Overhead= Actual labour hours x predetermine overhead rate= $136.94 x 74,000 = $10,133,360Applied Overhead= $10,133,360Actual Overhead= $9,200,000-Over applied= $933,650Since the Applied Overhead is $10,133,360 which is $933,650 greater than the ActualOverhead ($9,200,000), therefore the manufacturing overhead for year 3 is over applied.1d.Working:a.74,000 – 1,745 – 2,700 – 6,110 – 1,300 =62,145b.1,745 + 2,700 =4,445c.6,110 + 1,300 =7,410Directlabour hoursPercentage oftotal costChargeCost of Goods Sold62,145a83.98d$784,003.69gJob AB30 & AB31 (Finishedgoods)4,445b6.01e56,106.95hJob AB35 & AB41 (Work-in-process)7,410c10.01f93,499.36iTotal74,000100.00%$933,560
d.62,14574,000x 100% =83.98%e.4,44574,000x 100% =6.01%f.7,41074,000x 100% =10.01%g.83.98% x 933,560 =784,003.69h.6.01% x 933,560 =56,106.96i.10.01% x 933,560 =93,449.36Journal EntryApplied Manufacturing Overhead$10,133,560Work in Process Inventory$93,449.36Cost of Goods Sold$784,003.69Finished Goods Inventory$56,106.96Manufacturing Overhead Control$9,200,0001e.Devlin Manufacturing Co. is a manufacturing company that produce special purposeequipment for construction industry based on customer details, therefore Devlin used jobcosting system for his company. Job costing includes the accumulation of the costs ofmaterials, work, and overhead for a particular job. This approach suit Devlin since the joborder that Devlin have is unique and incurred different processes in producing the product.

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Term
One
Professor
N/A
Tags
Cost Accounting, work in process, applied overhead

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