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 $110,400 of manufacturing overhead for an estimated allocation base of $92,000 direct labor dollars. The company has provided the following data:
| Inventories |
Beginning |
Ending |
| Raw materials |
$ |
21,000 |
$ |
16,000 |
| Work in process |
$ |
49,000 |
$ |
37,000 |
| Finished goods |
$ |
72,000 |
$ |
61,000 |
|
| The following actual costs were incurred during the year: |
| |
|
|
| Purchase of raw materials (all direct) |
$ |
139,000 |
| Direct labor cost |
$ |
88,000 |
| Actual manufacturing overhead costs: |
|
|
| Insurance, factory |
$ |
10,600 |
| Depreciation of equipment |
$ |
17,000 |
| Indirect labor |
$ |
25,800 |
| Property taxes |
$ |
8,700 |
| Maintenance |
$ |
15,000 |
| Rent, building |
$ |
33,000
|
1-a.Compute the predetermined overhead rate for the year.
1-b.Compute the amount of underapplied or overapplied overhead for the year. (Input the amount as a positive value.)
2.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.)
3.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.)
4.Job 137 was started and completed during the year. What price would have been charged to the customer if the job required $3,800 in materials and $4,300 in direct labor cost, and the company priced its jobs at 20% above the job's cost according to the accounting system?
5.Direct labor made up $8,700 of the $37,000 ending Work in Process inventory balance. Supply the information missing below: