Solutions%20to%20Chapter%2030

Solutions%20to%20Chapter%2030 - Exercise36(15minutes) 1.

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Exercise 3-6  (15 minutes) 1. Actual manufacturing overhead costs. ............ $ 48,000 Manufacturing overhead applied: 10,000 MH × $5 per MH. ..............................       50,000     Overapplied overhead cost. ............................. $ 2,000 2. Direct materials: Raw materials inventory, beginning. ............. $ 8,000 Add purchases of raw materials. ..................   32,000     Raw materials available for use. ................... 40,000 Deduct raw materials inventory, ending. .......       7,000     Raw materials used in production. ................ $ 33,000 Direct labour. ................................................... 40,000 Manufacturing overhead cost applied to work  in process. ....................................................       50,000     Total manufacturing cost. ................................ 123,000 Add: Work in process, beginning. ....................           6,000     129,000 Deduct: Work in process, ending. ....................           7,500     Cost of goods manufactured. .......................... $121,500
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Exercise 3-11  (30 minutes) 1. Williams Chandler Nguyen Designer-hours. ............................. 200 80 120 Predetermined overhead rate. .......   ×     $45       ×     $45       ×     $45     Overhead applied. ......................... $9,000 $3,600 $5,400 2. Williams Chandler Direct materials cost. .................... $ 4,800 $1,800 Direct labour cost. ......................... 2,400 1,000 Overhead applied. ........................       9,000       3,600     Total cost. ..................................... $16,200 $6,400 Completed Projects. ...................... 22,600* Work in Process. ..................... 22,600* * $16,200 + $6,400 3. The balance in the Work in Process account consists entirely of  the costs associated with the Nguyen project: Direct materials cost. ................................ $ 3,600 Direct labour cost. ..................................... 1,500 Overhead applied. ....................................       5,400     Total cost in work in process. ................... $10,500 4. The balance in the Overhead account is determined as follows: Overhead Actual overhead costs 16,000 18,000 Applied overhead costs 2,000 Overapplied overhead  As indicated above, the credit balance in the Overhead account is  called overapplied overhead.
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Exercise 3-15  (15 minutes) 1. Milling Department: Estimated total manufacturing overhead cost Predetermined = overhead rate Estimated total amount of the allocation base $510,000 = =$8.50 per machine-hour 60,000 machine-hours Assembly Department: Predetermined = Estimated total manufacturing overhead cost Overhead rate     Estimated total amount of the allocation base            =         $800,000         
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Solutions%20to%20Chapter%2030 - Exercise36(15minutes) 1.

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