Reference no: EM132768039

Questions -

Q1. B&D Company uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. The company closes out any balance in the Manufacturing Overhead account to Cost of Goods Sold. During the year the company's Finished Goods inventory account was debited for $137,500 and credited for $113,200. The ending balance in the Finished Goods inventory account was $33,700. At the end of the year, manufacturing overhead was overapplied by $7,900. SHOW ALL WORK

A. What was the balance in the Finished Goods inventory account at the beginning of the year?

B. If the estimated manufacturing overhead for the year was $22,300, and the applied overhead was $29,700, what was the actual manufacturing overhead cost for the year?

Q2. A sporting goods manufacturer buys wood as a direct material for baseball bats. The Forming Department processes the baseball bats, and the bats are then transferred to the Finishing Department where a sealant is applied. There was no beginning work-in-process inventory in the Forming Department in May. The Forming Department began manufacturing 11,500 Casey Slugger baseball bats during May. Costs for the Forming Department for the month of May were as follows:

Direct materials $37,300

Conversion costs $19,800

A total of 8,700 bats were completed and transferred to the Finishing Department during May. The ending work-in-process inventory was 100% complete with respect to direct materials and 30% complete with respect to conversion costs. The company uses the weighted-average method of process costing. SHOW ALL WORK

a) What was the cost of the units transferred to the Finishing Department during May?

b) What was the cost of the work-in-process inventory in the Finishing Department at the end of May?