Chapter 3 - Exercise 31 (10 minutes) a. Process costing b....

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Exercise 3-1  (10 minutes) a. Process costing g. Job-order costing b. Job-order costing h. Process costing* c. Process costing i. Job-order costing d. Process costing j. Process costing* e. Process costing k. Job-order costing f. Job-order costing l. Job-order costing *  Some of the listed companies might use either a process costing  or a job-order costing system, depending on the nature of their  operations and how homogeneous the final product is. For  example, a chemical manufacturer would typically operate with a  process costing system, but a job-order costing system might be  used if products are manufactured in relatively small batches. The  same thing might be true of the tire manufacturing plant in item j. Exercise 3-3  (10 minutes) The predetermined overhead rate is computed as follows: Estimated total manufacturing overhead. ........... $134,000 ÷ Estimated total direct labor hours (DLHs). ......       20,000     DLHs = Predetermined overhead rate. ........................           $6.70     per DLH Exercise 3-5  (10 minutes) Actual direct labor-hours. ............................... 10,800 × Predetermined overhead rate. ....................       $23.40     = Manufacturing overhead applied. ................ $252,720
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Exercise 3-6  (20 minutes) 1. Cost of Goods Manufactured Direct materials: Raw materials inventory, beginning. ...... $12,000 Add: Purchases of raw materials. ...........   30,000     Total raw materials available. ................. 42,000 Deduct: Raw materials inventory,  ending. .................................................   18,000     Raw materials used in production. ......... 24,000
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Chapter 3 - Exercise 31 (10 minutes) a. Process costing b....

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