chapter 2 .docx - ACT 213 Chapter 2 E1 Estimated total...

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ACT 213 Chapter 2 E1 Estimated total manufacturing overhead: Y=a+bX =Estimated fixed manufacturing overhead+ variable mfg Overhead*Direct labor hour =$94,000+2.00*20,000=$134,000 Predetermined overhead rate= Estimated total manufacturing overhead/ Estimated direct labor hours=134,000/20,000=$6.7per DLH E2 Mfg overhead applied= Actual dire labor hours*predetermined overhead rate =10,800*23.40=$252,720 E3 1Direct labor hour= Direct labor cost/ Direct labor wage rate =108/12= 9 Total manufacturing cost= direct material+ direct labor+ manufacturing overhead applied =$230+ $108+$14*9=$464 2 Average cost assigned to each unit= total manufacturing cost/units=$464/40=$11.60 E4 a Raw Materials 80,000 Accounts Payable 80,000 b Manufacturing Overhead 9,000 Work in Process 62,000 Raw Materials 71,000 c Work in Process 101,000 Manufacturing Overhead 11,000 Wages Payable 112,000 d Manufacturing Overhead 175,000 Various Accounts 175,000 E6 1 Cost of goods manufactured Direct materials: Beginning raw materials inventory $12,000 Add: Purchases of raw materials 30,000 Total raw material available 42,000 Deduct: Ending raw materials inventory (18,000) Raw materials used in production 24,000
Deduct: Indirect materials included in mfg. overhead (5,000) $19,000 Direct labor: 58,000 Mfg. overhead applied to work in process 87,000 Total manufacturing costs 164,000 Add: Beginning work in process inventory 56,000 Deduct: Ending work in process inventory (65,000) Cost of goods manufactured $155,000 2 Cost of goods sold: Beginning finished goods inventory $35,000 Add: Cost of goods manufacturing 155,000 Costs of goods available for sale 190,000 Deduct: Ending finished goods inventory (42,000) Unadjusted cost of goods sold 148,000 Add: Underapplied overhead 4,000 Adjusted costs of goods sold $152,000 E12 1 Manufacturing Overhead Applied= Predetermined overhead rate*Machine Hours =$25 per MH* 19,400 =$485,000

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