Goathead Company uses a job order cost system with overhead applied based on direct labor hours. See estimated amounts below. Note the beginning balances for Finished Goods (Job 101) and Work-in-Process (Jobs 102 & 103) for the costs accumulated to date. Also note, the beginning balances in the other balance sheet accounts.
1. Compute the predetermined overhead rate.
2. Compute how much overhead would be applied to jobs during the period:
3 Compute the total cost of Jobs 102 and 103 at the end of the period. You will enter your calculation in the 'Ledger Accounts' tab of this workbook.
Where will the cost of each of these jobs appear on the Balance sheet?
4 Post the journal entries to the 'T' Accounts in the 'Ledger Accounts' tab. Calculate the ending balances in all of the accounts.
5 Calculate the amount of over- or underapplied overhead in the 'Ledger Accounts' tab.
6 Post the journal entry in the T accounts to dispose of the overhead balance in the 'Ledger Accounts' tab.
7 Prepare a statement of cost of goods manufactured report in the 'Reports' tab.
8 Prepare an income statement in the 'Reports' tab.
9 Prepare a basic balance sheet in the 'Reports' tab.
Attachment:- Comprehensive-Problem.rar