Hogle Corporation uses job-order costing and applies overhead cost to jobs on the basis of machine-hours...
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Hogle Corporation uses job-order costing and applies overhead cost to jobs on the basis of machine-hours worked. For the just completed year, the company estimated that it would work 75,000 machine-hours and incur $450,000 in manufacturing overhead cost. The company actually worked 80,000 machine-hours. The company has provided the following financial data concerning its actual operations for the year: $360,000 $75,000 $90,000 $17,000 $180,000 Selling and Administrative Depreciation $70,000 $3,000 $20,000 $110,000 $200,000 $43,000 $280,000 $7,000 $1,500,000 Direct Materials Indirect Materials Direct Labor Indirect Labor Sales Commissions Administrative Salaries General Selling Expenses Advertising Costs Factory Utility Costs Factory Depreciation Factory Insurance Selling and Administrative Insurance Sales Direct Product Manufacturing Cost Cost Item Total Amount Period Cost Overhead Direct Materials $ 360,000 $ 360,000 Indirect Materials 20,000 $ 20,000 Direct Labor Indirect Labor Sales Commissions Administrative Salaries General Selling Expenses Factory Utility Costs Advertising Costs Factory Depreciation Selling and Administrative Depreciation Factory Insurance $ 75,000 $ 75,000 110,000 $ 110,000 $ 90,000 $ 90,000 $ 200,000 $ 200,000 $ 17,000 $ 17,000 $ 43,000 43,000 $ 180,000 $ 180,000 $ 280,000 $4 280,000 70,000 70,000 7,000 7,000 Selling and Administrative Insurance 3,000 $ 3,000 Totals 435,000 $ 460,000 $ 560,000 %24 %24 2. Compute the Predetermined Overhead Rate. Formula: Predetermined Overhead Rate manufactured overhead I machine hours Calculation: Predetermined Overhead Rate 450,000 / 75,000 Predetermined Overhead Rate 6.00 %3D 3. Compute the amount of manufacturing overhead applied to production. Formula: Manufacturing Overhead Applied actual machine hours x predetermined overhead rate Calculation: 80,000.00 x 480,000 Manufacturing Overhead Applied Manufacturing Overhead Applied $ 4. Assuming that no work was in progress at the beginning of the year, and no work was in progress at the end of the year, what was the cost of goods manufactured for the year (ie what was the total dollar amount of job costs for the year)? Job Costs: Beginning Work in Process: direct material direct labor manufacturing overhead Less Ending Work In Process: Total Job Cost $ $ 360,000 $ 75,000 $ 480,000 $ 2$ 915,000 5. Assuming only one type of product was produced, and 91,500 units were produced during the year, compute the cost per unit. Cost Per Unit 10.00 6. Calculate the amount of overapplied or underapplied overhead for the Year. Formula: Over/Underapplied Overhead Calculation: Over/Underapplied Overhead 480,000 460,000 Over/Underapplied Overhead $ 20,000 7. 87,000 units were sold during the year. Calculate the unadjusted cost of goods sold for the Year. Formula: Unadjusted Cost of Goods Sold Calculation: Unadjusted Cost of Goods Sold Unadjusted Cost of Goods Sold 8. Calculate the adjusted cost of goods sold for the year. Formula: Adjusted Cost of Goods Sold = Unadjusted Cost of Goods Sold Overapplied Overhead OR: Adjusted Cost of Goods Sold Unadjusted Cost of Goods Sold Underapplied Overhead Calculation: Adjusted Cost of Goods Sold Adjusted Cost of Goods Sold 9. Create an Income Statement for the year. Hogle Corporation Income Statement Sales Cost of Goods Sold Gross Margin Selling and Administrative Expenses Net Operating Income 560,000 Hogle Corporation uses job-order costing and applies overhead cost to jobs on the basis of machine-hours worked. For the just completed year, the company estimated that it would work 75,000 machine-hours and incur $450,000 in manufacturing overhead cost. The company actually worked 80,000 machine-hours. The company has provided the following financial data concerning its actual operations for the year: $360,000 $75,000 $90,000 $17,000 $180,000 Selling and Administrative Depreciation $70,000 $3,000 $20,000 $110,000 $200,000 $43,000 $280,000 $7,000 $1,500,000 Direct Materials Indirect Materials Direct Labor Indirect Labor Sales Commissions Administrative Salaries General Selling Expenses Advertising Costs Factory Utility Costs Factory Depreciation Factory Insurance Selling and Administrative Insurance Sales Direct Product Manufacturing Cost Cost Item Total Amount Period Cost Overhead Direct Materials $ 360,000 $ 360,000 Indirect Materials 20,000 $ 20,000 Direct Labor Indirect Labor Sales Commissions Administrative Salaries General Selling Expenses Factory Utility Costs Advertising Costs Factory Depreciation Selling and Administrative Depreciation Factory Insurance $ 75,000 $ 75,000 110,000 $ 110,000 $ 90,000 $ 90,000 $ 200,000 $ 200,000 $ 17,000 $ 17,000 $ 43,000 43,000 $ 180,000 $ 180,000 $ 280,000 $4 280,000 70,000 70,000 7,000 7,000 Selling and Administrative Insurance 3,000 $ 3,000 Totals 435,000 $ 460,000 $ 560,000 %24 %24 2. Compute the Predetermined Overhead Rate. Formula: Predetermined Overhead Rate manufactured overhead I machine hours Calculation: Predetermined Overhead Rate 450,000 / 75,000 Predetermined Overhead Rate 6.00 %3D 3. Compute the amount of manufacturing overhead applied to production. Formula: Manufacturing Overhead Applied actual machine hours x predetermined overhead rate Calculation: 80,000.00 x 480,000 Manufacturing Overhead Applied Manufacturing Overhead Applied $ 4. Assuming that no work was in progress at the beginning of the year, and no work was in progress at the end of the year, what was the cost of goods manufactured for the year (ie what was the total dollar amount of job costs for the year)? Job Costs: Beginning Work in Process: direct material direct labor manufacturing overhead Less Ending Work In Process: Total Job Cost $ $ 360,000 $ 75,000 $ 480,000 $ 2$ 915,000 5. Assuming only one type of product was produced, and 91,500 units were produced during the year, compute the cost per unit. Cost Per Unit 10.00 6. Calculate the amount of overapplied or underapplied overhead for the Year. Formula: Over/Underapplied Overhead Calculation: Over/Underapplied Overhead 480,000 460,000 Over/Underapplied Overhead $ 20,000 7. 87,000 units were sold during the year. Calculate the unadjusted cost of goods sold for the Year. Formula: Unadjusted Cost of Goods Sold Calculation: Unadjusted Cost of Goods Sold Unadjusted Cost of Goods Sold 8. Calculate the adjusted cost of goods sold for the year. Formula: Adjusted Cost of Goods Sold = Unadjusted Cost of Goods Sold Overapplied Overhead OR: Adjusted Cost of Goods Sold Unadjusted Cost of Goods Sold Underapplied Overhead Calculation: Adjusted Cost of Goods Sold Adjusted Cost of Goods Sold 9. Create an Income Statement for the year. Hogle Corporation Income Statement Sales Cost of Goods Sold Gross Margin Selling and Administrative Expenses Net Operating Income 560,000
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Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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