Managerial Accounting

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Chapter 3 Solutions, 3rd day
Exercise 3-13 (15 minutes)
1.| Actual manufacturing overhead costs| | $ 48,000| | Manufacturing overhead applied:
10,000 MH × $5 per MH| |    50,000|
| Overapplied overhead cost| | $  2,000|
| | | |
2.| Direct materials:| | |
| Raw materials inventory, beginning| $ 8,000| |
| Add: Purchases of raw materials|  32,000| |
| Raw materials available for use| 40,000| |
| Deduct: Raw materials inventory, ending|   7,000| | | Raw materials used in production| | $ 33,000|
| Direct labor| | 40,000|
| Manufacturing overhead cost applied to work in process| |    50,000| | Total manufacturing cost| | 123,000|
| Add: Work in process, beginning| |      6,000| | | | 129,000|
| Deduct: Work in process, ending| |      7,500| | Cost of goods manufactured| | $121,500|
| | | |

Problem 3-24 (60 minutes)
1.a.

b.| Actual manufacturing overhead costs:| |
| Insurance, factory| $  7,000|
| Depreciation of equipment| 18,000|
| Indirect labor| 42,000|
| Property taxes| 9,000|
| Maintenance| 11,000|
| Rent, building|   36,000|
| Total actual costs| 123,000|
| Applied manufacturing overhead costs: $80,000 × 150%|  120,000| | Underapplied overhead| $  3,000|
| | |

2.
Pacific Manufacturing Company
Schedule of Cost of Goods Manufactured|
Direct materials:| | |
Raw materials inventory, beginning| $ 21,000| |
Add: Purchases of raw materials|  133,000| |
Total raw materials available| 154,000| |
Deduct: Raw materials inventory, ending|   16,000| | Raw materials used in production| | $138,000|
Direct labor| | 80,000|
Manufacturing overhead applied to work in process| |  120,000| Total manufacturing cost| | 338,000|

Add: Work in process, beginning|...
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