Total Unit Material Cost- 200

Total Unit Labor Cost -200

Applied Manfacturing OverheadUnit Cost -54

Total Product Cost - 454

Selling Price - 1362

Predetermined Overhead Rate -2.7

PROBLEM 3-7 ACCOUNTING 232 JOB ORDER COSTING Product- DIRECT MATERIALS - QUANTITY PER UNIT $20.00 200 UNIT COST TOTAL UNIT MATERIAL COST 20 PRODUCT LABOR HOURS PER UNIT $10.00 I 200 LABOR RATE PER HOUR TOTAL UNIT LABOR COST 1 54 APPLIED MANUFACTURING OVERHEAD UNIT COST TOTAL PRODUCT COST 1454 15.000 [1362 QUANTITY TO BE PRODUCED SELLING PRICE - THREE TIMES UNIT COST MANUFACTURING OVERHEAD COST: 6. DEPRECIATION 7. UTILITIES 8. SUPPLIES 9. TAXES 10. INSURANCE $350,000 50,000 200,000 100,000 100,000 ESTIMATED TOTAL COST $800,000 ESIMATED TOTAL LABOR HOURS PREDERTERMINED OH RATE 300,000 214 Page ISSUED CO MON STOCK WORTH DON ACCOUNT 1650 UNITS ON RAW MATERIALS PURCHASED ON A 20.00 EACH NSFERRID 150,000 UNITS 150.000 UNITS TO WOR 100.000 LABOR HOURS AT SI INCURRED 300. ATER (Hint: wees payable -PROCESS T O WEND APPLIED M MANUFACTURING OVERHEAD FOR Y OURS TED 15000 UNITS WITH TOTAL LOAN COMPACTURING OVERHEAD CHARGED TO COMPLETED MANUFACTURIN UNITS MANUFACTURING OVERHEAD INCURRED SOLD 14000 UNITS ON ACCO & ACTUAL MANUFACT is not credited to cash) i. Depreciation ii Utilities iii. Supplies iv. Taxes V. Insurance Depreca 280,000 80,000 120.000 55.000 45.000 PREPARE JOURNAL ENTRY FOR OVERAPPLIED UNDERAPPLIED OVERHEAD IF ANY SELLING EXPENSES INCURRED IS 10% OF TOTAL SALES - PAID IN CASH 11. OFFICE EXPENSES INCURRED IS 1.000.000 - PAID IN CASH REQUIRED: 1. COMPLETE JOURNAL ENTRIES 2. POST JOURNAL ENTRIES TO THE LEDGER 3. PREPARE TRIAL BALANCE 4. PREPARE COST OF GOODS MANUFACTURED STATEMENT 5. PREPARE COST OF GOODS SOLD STATEMENT 6. PREPARE INCOME STATEMENT 7. PREPARE STATEMENT OF RETAINED EARNINGS 8. PREPARE BALANCE SHEET 215| Page