Problem 3-14 Schedule of Cost of Goods Manufactured; Overhead Analysis (LO3-3, LO3-4) Gitano Products operates a…
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Question “Problem 3-14 Schedule of Cost of Goods Manufactured; Overhead Analysis (LO3-3, LO3-4) Gitano Products operates a…”
Answer
1) Predetermine overhead = 1183300/91000 = 130% direct material
2) Direct Material Used = 25000+140000-14000 = 15.1000
Overhead = 151000*1.3 = 196300
Actual overhead = 200500
Below applied overhead = 200500-196300 =4200
3) Cost of goods manufactured
Material directly | ||
Start material | 25000 | |
Material purchase | 140000 | |
Material available for use | 165000 | |
We need less: Ending material | -14000 | |
Use of direct material | 151000 | |
Direct labor | 87000 | |
Manufacturing overhead applied | 196300 | |
Manufacturing cost total | 434300 | |
Beginning work in process | 48000 | |
Total cost of the work involved | 482300 | |
Work in progress should be stopped and less | -38000 | |
Manufacturing costs | 444300 |
4) Cost of goods sold
Start finished goods | 73000 |
Manufacturing costs | 444300 |
Price of the goods on sale | 517300 |
Less; Ending finished goods | -56000 |
Unadjusted Cost of Goods Sold | 461300 |
5) Calculate the following
Material directly | 8900 |
Direct labor | 17530 |
manufacturing overhead (8900*1.30) | 11570 |
In process inventory | 38000 |
Conclusion
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