Reference no: EM13320257

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