The Pacific Manufacturing Company operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. Its predetermined overhead rate was based on a cost formula that estimated $113,100 of manufacturing overhead for an estimated allocation base of $87,000 direct labor dollars. The company has provided the following data:
- Inventories Beginning Ending
- Raw materials $ 27,000 $ 10,000
- Work in process $ 49,000 $ 36,000
- Finished goods $ 74,000 $ 55,000
The following actual costs were incurred during the year:
- Purchase of raw materials (all direct) $ 131,000
- Direct labor cost $ 83,000
Actual manufacturing overhead costs:
- Insurance, factory $ 8,700
- Depreciation of equipment $ 18,000
- Indirect labor $ 27,200
- Property taxes $ 8,700
- Maintenance $ 15,000
- Rent, building $ 34,000
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Compute the predetermined overhead rate for the year.
Predetermined overhead rate %
Compute the amount of underapplied or overapplied overhead for the year. (Input the amount as a positive value.)
overhead $
Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials. (Input all amounts as positive values.)
- Pacific Manufacturing Company
- Schedule of Cost of Goods Manufactured
Direct materials:
- $Total raw materials available
- Raw materials used in production $
- Total manufacturing cost
- Cost of goods manufactured $
Compute the unadjusted cost of goods sold for the year. (Do not include any underapplied or overapplied overhead in your cost of goods sold figure.
Unadjusted cost of goods sold $
Job 137 was started and completed during the year. What price would have been charged to the customer if the job required $3,600 in materials and $4,000 in direct labor cost, and the company priced its jobs at 50% above the job%u2019s cost according to the accounting system?
Price to customer $
Direct labor made up $8,500 of the $36,000 ending Work in Process inventory balance. Supply the information missing below:
- Direct materials $
- Direct labor 8,500
- Manufacturing overhead
- Work in process inventory $ 36,000