1)

selected cost data for Classic poster, co., are as follows estimated manufacturing overhead cost for the year $140000 estimated direct labor cost for the year $87500 actual manufacturing overhead cost for the year 117000 actual direct labor cost for the year 73000 1. compute the predetermined manufacturing overhead rate per direct labor dollar. (round answer to nearest whole percent) 2. prepare the journal entry to allocate overhead cost for the year 3. use a t-account to determine the amount of underallocated or overallocated manufacturing overhead 4. Prepare the journal entry to close the balance of the manufacturing overhead account

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2) consider the following transactions for Marge's Sofas:

a) incurred and paid web site expenses, $2000

b) assigned manufacturing wages of $10,000, 80% of which was direct labor and 20% of which was indirect labor

c) purchased materials on account, $21,000

d) used in production: direct materials, $6000; indirect materials, $3000

e) recorded manufacturing overhead: depreciation on plant, $16000, plant insurance $2000; plant property tax, $3900 (credit property tax payable)

f) allocated manufacturing overhead to jobs, 200% of direct labor costs

g) completed production, $36000

h) sold inventory on account, $22000; cost of goods sold, $18000

i) journalize the closing of the manufacturing overhead account

Journalize the transactions in Marge's general journal. (record debits first then credits) Journalize the entry for Marge's Sofas' web site expenses incurred and paid.

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3) Spring Trailers' job cost records yielded the following information:

job number | date started|date finished|date sold| total cost of job at August 31

1 | July 21 | August 16 |August 17| $3800

2 |July 29 |August 21 |August 26 | $13000

3 |August 3 |Sept 11 |Sept 13 | $6700

4 |August 7 |August 29 |Sept 1 | $4200

1) using the dates above to identify the status of each job. Compute Spring's cost of (a) Work in process inventory at August 31, (b) finished goods inventory at August 31, and (c) cost of goods sold for August

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4) Metal Foundry uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs, based on the machine hours required. The predetermined overhead rate was $16 and Metal allocated $992000 of manufacturing overhead to work in process.

At the beginning of 2012, the company expects to incur the following:

manufacturing overhead costs: $860000

direct labor costs: $1530000

machine hours: 53750 hours

at the end of 2012, the company had actually incurred:

direct labor cost: $1250000

depreciation on manufacturing property, plant, and equipment: 550000

property taxes on plant: 38000

sales salaries: 27000

delivery driver's wages: 24500

plant janitor's wages: 19000

machine hours: 62000 hours

1.Use a T-account to determine whether manufacturing overhead is underallocated or overallocated, and by how much.

2. Record the entry to close out the underallocated or overallocated manufacturing overhead.

3. What is the adjusted ending balance of cost of goods sold?

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5) The manufacturing records for Krazy Kayaks at the end of the 2012 fiscal year show the following information about manufacturing overhead:

overhead allocated to production $403200

actual manufacturing overhead costs $433000

overhead allocation rate for the year $42 per machine hour

1. How many machine hours did Krazy Kayaks use in 2012?

2. Was manufacturing overhead over- or underallocated for the year and by how much?

3. Prepare the entry to close out the over- or underallocated overhead.

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6) June production generated the following activity in Classic Chassis Company's Work in process inventory account:

work in process inventory account

June 1 Bal 16000

direct materials used 32000

direct labor assigned to jobs 34000

manufacturing overhead allocated to jobs 15000

Additionally, Classic has completed Jobs 142 and 143, with total costs of $40,000 and $38,000 respectively

requirements

1. prepare the journal entry for production completed in June

2. Post the journal entry made in requirement 1. Compute the ending balance in the Work in process account on June 30.

3. Prepare the journal entry to record the sale (on credit) of Job 143 for $47000. Also, prepare the journal entry to record Cost of goods sold for Job 143.

4. What is the gross profit on Job 143? What other costs must gross profit cover?

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7) Unique Construction, Inc., is a home builder in Arizona. Unique uses a job order costing system in which each house is a job. Because it constructs houses, the company uses accounts titled Construction overhead. The company applies overhead based on estimated direct labor costs. For the year, it estimated construction overhead of $1350000 and total direct labor cost of $2700000. The following events occurred during August:

a. Purchased materials on account, $400000

b. Requisitioned direct materials and used direct labor in construction. Record the materials requisitioned

| Direct materials| direct labor

House 402| $51000 | $45000

House 403| $67000 | $31000

House 404| $66000 | $55000

House 405| $88000 |$52000

c. The company incurred total wages of $280,000. Use the data from item b to assign the wages.

d. depreciation of construction equipment $6600

e. other overhead costs incurred on houses 402 through 405:

Indirect labor: $97000

equipment rentals paid in cash: $35000

worker liability insurance expired: 8000

Assume that these indirect labor costs are in addition to the total wages from item c.

f. allocated overhead to jobs

g. houses completed: 402, 404

h. house sold: 404 for $230,000

1. calculate Unique's construction overhead application rate for the year

2. prepare journal entries to record the events in the general journal.

3. post the appropriate entries to the T-accounts, identifying each entry by letter. Determine the ending account balances, assuming that the beginning balances were zero.

4. Add the costs of the unfinished houses, and show that this total amount equals the ending balance in the Work in process inventory account.

5. Add the cost of the completed house that has not yet been sold, and show that this equals the ending balance in Finished Goods inventory.

6. Compute gross profit on the house that was sold. what costs must gross profit cover for Unique Construction?

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8) The mixing department of tasty foods had 62000 units to account for in October. Of the 62000 units, 38000 units were completed and transferred to the next department, and 24000 units were 20% complete. All of the materials are added at the beginning of the process. Conversion costs are added equally throughout the mixing process.

1. Complete the total equivalent units of direct materials and conversion costs for October. (fill in the blanks)

Tasty Foods

Equivalent units- mixing department

month ended October 31

Flow of production

Step 2: Equivalent units

units accounted for: |whole units| direct materials| conversion costs

completed and transferred out during October: ________| ____________|_______________

ending work in process, october 31 :_________|____________|_______________

Total physical units to be assigned costs :_________|____________|_______________

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9) The Mixing Department of Complete Foods has 65,000 equivalent units of materials and 56000 equivalent units of conversion costs for October. The Mixing Department of Complete Foods has direct materials costs of $78000 and the conversion costs are $44800 for October.

1. Compute the cost per equivalent unit for direct materials and for conversion costs.

Start with direct materials

the direct materials cost per equivalent unit= $___

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10) The mixing department of Fresh Foods had 50,000 units to account for in October. Of the 50,000 units, 15000 units were completed and transferred to the next department, and 35000 units were 45% complete. The Mixing Department has 50,000 equivalent units of materials and 30750 equivalent units of conversion costs for October. Fresh Foods' costs per equivalent unit are $0.70 for direct materials and $0.60 for conversion costs. All of the materials are added at the beginning of the process. Conversion costs are added equally throughout the process.

Requirement

1. Calculate the cost of the 15000 units completed and transferred out and the 35000 units, 45% complete, in the ending work in process inventory.

Fill in the blanks

Fresh Foods

Assign Costs- Mixing Department

Month ended October 31

Flow of Production

Step 4: Assign Costs

|Direct materials| conversion costs| total costs

completed and transferred out during October|_____________|______________|_________

Ending work in process, October 31 |_____________|______________|_________

Total costs accounted for |___________

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11) Patel Foundry uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs, based on the machine hours required.

At the beginning of 2012, the company expects to incur the following:

manufacturing overhead costs: $880,000

Direct labor costs: $ 1520000

machine hours: 80000 hours

At the end of 2012, the company had actually incurred:

direct labor cost: $1190000

depreciation on manufacturing property, plant, and equipment: $560000

property taxes on plant : $39000

sales salaries: $26000

Delivery drivers' wages: $24500

plant janitor's wages: 20000

machine hours : 67000 hours

1.Compute Patel's predetermined manufacturing overhead rate.

2. Prepare the journal entry to allocate manufacturing overhead.

3. Post the manufacturing overhead transactions to the Manufacturing overhead T-account. Is manufacturing overhead underallocated or overallocated? by how much?

4. Close the manufacturing overhead account to cost of goods sold. Does your entry increase or decrease cost of goods sold?