Exam_1_F08

# Exam_1_F08 - Management 122 Fall 2008 Danny S Litt EXAM 1...

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Management 122 Fall 2008 Danny S. Litt EXAM 1 Solutions I agree to have my grade posted by Student ID Number ________________ _________________ (Signature) (Student ID Number) Name: ________________ Section No. __________ PROBLEM POINTS SCORE 1 20 2 20 3 20 4 20 5 20 6 20 7 20 8 20 9 20 10 20 TOTAL 200

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M ANAGEMENT 122 N AME : __________________________ Page | 1 Problem 1 At the beginning of the year, manufacturing overhead for the year was estimated to be \$250,860. At the end of the year, actual direct labor-hours for the year were 20,800 hours, the actual manufacturing over- head for the year was \$245,860, and manufacturing overhead for the year was underapplied by \$10,820. Requirements If the predetermined overhead rate is based on di- rect labor-hours, then the estimated direct labor- hours at the beginning of the year used in the pre- determined overhead rate must have been: _____22,200________estimated direct labor hours Actual mfg. overhead Applied mfg. overhead = Underapplied mfg. overhead \$245,860 Applied manufacturing overhead = \$10,820 Applied manufacturing overhead = \$235,040 Applied manufacturing overhead = Actual direct labor-hours × ( Estimated manufacturing overhead ) Estimated direct labor-hours \$235,040 = 20,800 × ( \$250,860 ) Estimated direct labor-hours \$11.30 = ( \$250,860 ) Estimated direct labor-hours Estimated direct labor-hours = 22,200 direct labor-hours (rounded)
M ANAGEMENT 122 N AME : __________________________ Page | 2 Problem 2 The following data are for Potras Company: Beginning Ending Finished goods inventory . .............. \$30,000 \$40,000 Work in process inventory . ............ \$20,000 \$13,000 Raw materials inventory . ............... \$21,000 \$26,000 Purchases of raw materials . ........................ \$71,000 Factory depreciation . .................................. \$5,000 Other factory costs . .................................... \$10,000 Direct labor . ............................................... \$27,000 Indirect labor . ............................................. \$6,000 Selling expense . ......................................... \$12,000 Underapplied or overapplied overhead . ..... \$0 Requirements a. The cost of raw materials used in production was: ________ \$66,000 ____________ Direct materials: Raw materials inventory, beginning \$21,000 Add purchases of raw materials 71,000 Total raw materials available 92,000 Deduct raw materials inventory, ending 26,000 Raw materials used in production \$66,000 b. The cost of goods manufactured was: ____________ \$121,000 ______________ Direct materials: Raw materials inventory, beginning . ........................ \$21,000 Add purchases of raw materials . ............................... 71,000 Total raw materials available . ................................... 92,000 Deduct raw materials inventory, ending . .................. 26,000 Raw materials used in production . ............................... \$ 66,000 Direct labor . ................................................................. 27,000

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Exam_1_F08 - Management 122 Fall 2008 Danny S Litt EXAM 1...

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