Chapter 16 Practice Problems II Problem #1 Directions: Arrange the below accounts in the cost flow order, and determine the unknown numbers and the ending balances for each account. Close the overapplied or underapplied Factory Overhead to Cost of Goods Sold.

Factory overhead

Indirect Materials 550,000 Indirect Labor 892,000 Factory Supplies 550,000 Factory Insurance 1,025,000 Factory Overhead Rate based on Direct Labor 110%

Finished Goods Inventory Beginning Inventory 46,000 Transferred In Unknown Transferred Out 6,200,000 Ending Balance Unknown

Cost of Goods Sold Beginning Balance 1,250,000 Transferred In Unknown Ending Balance Unknown

Materials Inventory Beginning Balance 3,000,000 Purchases Unknown Materials Used as Direct Materials 3,300,000 Materials Used as Factory Overhead Unknown Ending Balance 1,900,000

Wages Payable Total Factory Payroll 3,750,000 Direct Labor Unknown Indirect Labor Unknown

Work in Process Inventory Beginning Balance 95,000 Direct Materials Unknown Direct Labor Unknown Factory Overhead Unknown Transferred Out 7,800,000 Ending Balance Unknown

Chapter 16 Practice Problems II Problem #2 Estimated Direct Labor Hours 530,000 Estimated Direct Labor Dollars 1,250,000$ Estimated Factory Overhead 874,500$ Actual Direct Labor Hours 565,000 Actual Direct Labor Dollars 1,375,000$ Actual Factory Overhead Costs 980,000$ The companies apply overhead to products based on Direct Labor Hours.

A) Calculate the predetermined factory overhead rate based on Direct Labor Hours. B) Use the predetermined overhead rate to apply overhead to products. C) Calculate the over/underapplied overhead.