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)
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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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