The Wilson Phillips Company uses normal costing as part of its job-order costing system. The company began operations in 2018. During the 2018, the company only worked on two jobs (Job 0 and Job 1). The Materials Control account includes both direct and indirect materials. The company purchased $3,000 of total materials during 2018. The costs charged to the two jobs during 2018 are as follows:

Job 0 was charged $1,000 for direct materials, $1,500 for direct labor, and $4,500 for allocated overhead

Job 1 was charged $900 for direct materials, $400 for direct labor, and $1,200 for allocated overhead.

The company used $300 of indirect materials during 2018. Job 0 was finished during 2018 and consisted of 50 units. Of these 50 units, 40 were sold during 2018. Job 1 was NOT finished during 2018. Any underallocated or overallocated overhead was closed totally to Cost of Goods Sold at the end of 2018.

Compute the ending balance in the Materials Control Account for 2018. Do not put a dollar sign in your answer.

Compute the ending balance in Work in Process for 2018. Do not put a dollar sign in your answer

Compute the ending balance in Finished Goods Control for 2018. Do not put a dollar sign in your answer.

You will need your answers from the last 3 questions to answer questions for 2019. During 2019, the company worked on 3 jobs (Job 1, Job 2, and Job 3). The predetermined overhead rate for 2019 is based on direct labor cost. The estimated direct labor cost for 2019 was $12,500, and the estimated overhead cost for 2019 was $50,000. During 2019, the following DIRECT costs were charged to the 3 jobs:

Job 1 was charged $4,000 for direct materials and $2,000 for direct labor

Job 2 was charged $6,000 for direct materials and $5,000 for direct labor

Job 3 was charged $4,500 for direct materials and $3,000 for direct labor

During the 2019, the company purchased $18,000 in total materials. The total actual overhead for 2019 was $47,000. Of this $47,000, $2,100 was for indirect materials. During 2019, Job 1 and Job 2 were finished. Job 1 had 100 units and Job 2 had 500 units. During 2019, the company sold 10 units from Job 0, 75 units from Job 1, and 300 units from Job 2.

Compute the underallocated or overallocated overhead for 2019.

Compute the ending balance in the Materials Control account for 2019. Do not put a dollar sign in your answer.

Compute the ending balance in Work in Process for 2019. Do not put a dollar sign in your answer.

Compute the total Cost of Goods Manufactured for 2019. You do not need to do a schedule. Do not put a dollar sign in your answer.

Compute the ending balance in Finished Goods Control for 2019. Do not put a dollar sign in your answer.

Compute the Unadjusted Cost of Goods Sold for 2019. Do not put a dollar sign in your answer.

Assume that you are going to prorate the under/overallocated overhead using the total ending balances in the appropriate accounts. I want you to show me the two numbers that you would divide in order to get the percentage of the proration that goes to Work in Process. You don't have to actually compute the percentage or the proration. Just show me the numerator and the denominator that you would use to figure out what percentage of the proration would go to Work in Process.   

Now assume that we are prorating using the most theoretically correct method. Compute the percentages of the proration that would go to each of the appropriate accounts. In order to get partial credit on this 6 -point question, you need to show me how you got those percentages.  

Answer rating: 100% (QA)

2100 The under allocated or overallocated overhead for 2019 is 2100 This is because the total actual overhead for 2019 was 47000 and the estimated ove... View the full answer