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Assignment # 10 - Naiya Amin ACCT 3231*01WC Assignment 10...

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Naiya Amin ACCT 3231*01WC Assignment # 10 Problem # 4-37, chapter 7 definition & chapter 8 questions Problem # 4-37 1. What was the amount of direct materials issued to production during 2008? Answer: $380,000 (from the credit amount in direct material control T account) 2. What was the amount of manufacturing overhead allocated to jobs during 2008? Answer: $480,000 Direct manufacturing labor hours = direct manufacturing labor cost_______ Direct manufacturing labor wage rate per hour = $360,000/$15 per hour = 24,000 hour Manufacturing overhead allocated = direct manufacturing labor hours X manufacturing overhead rate = 24,000 hours X $20 per hour = $480,000 3. What was the total cost of jobs completed during 2008? Answer: $940,000 From the debit entry to Finished Goods T-account, Cost of jobs completed and transferred from WIP = $940,000 4. What was the balance of work – in – process inventory on December 31, 2008? Answer: $300,000
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5. What was the cost of goods sold before proration of under – or overallocated overhead? Answer: 900,000 From the credit entry to Finished Goods Control T-account, Cost of goods sold (before proration) = $900,000 6. What was the under – or overallocated manufacturing overhead in 2008? Answer: $60,000 underallocated Manufacturing overhead underallocated = debits to manufacturing overhead control – credit to manufacturing Overhead allocated = $540,000 - $480,000 = $60,000 underallocated 7. Dispose of under or overallocated manufacturing overhead using a. Write-off to cost of goods sold Answer: Write-off to cost of goods sold will increase (debit) cost of goods sold by $60,000. So, cost of goods sold = $900,000 + $60,000 = $960,000. b. Proration based on ending balances (before proration) in work – in – process control, finished goods control, and cost of goods sold? Answer:
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8. Using each of the approaches in requirement 7, calculate Needham’s operating income for 2008.
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