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 under applied or over applied 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
**how to compute price to customer?