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Raw material

Work in process

Finished goods

Inventories
Beginning
Ending
61,000
81,000
80,000
30,000
90,000
110,000

Direct material used


Direct Labour
Manufecturing Overhead-60% of Direct Labor
Total manufacturing costs

Cost of goods available for sale


Selling and administrative expenses

Q1- Raw material purchased


Direct material used
Add Raw material ending
Deduct raw material beginning

318,000

230,000
138000
686,000

826,000
30,500

318,000
399,000
338,000 This is raw material purchased during year

rchased during year

Aquarius Hotel Supply Company

Budgeted sales revenue


Budgeted manufacturing overhead
Budgeted machine hours (based on practical capacity)
Budgeted direct-labor hours (based on practical capacity)
Budgeted direct-labor rate per hour
Actual manufacturing overhead
Actual machine hours
Actual direct-labor hours
Actual direct-labor rate per hour

Predetermined Overhead Rate


Actual Overhead Rate
Applied Manufecturing Overhead

205,000
364,000
10,000
20,000
14
340000
11000
18000
16

36.4
30.909091
400400

Inventories
Beginning
Ending

Work in process

94,500

Direct material used


Direct Labour
Manufecturing Overhead-20 percent of total manufacturing costs
Total manufacturing costs

Cost of goods manufactured

Cherry Hill Glass Company employs a normal costing system


Total manufacturing costs were $1,310,000.
Cost of goods manufactured was $1,275,500.
Applied manufacturing overhead was 30 percent of total manufacturing costs.
Manufacturing overhead was applied to production at a rate of 80 percent of directlabor cost.
Work-in-process inventory on January 1 was 75 percent of work-in-process
inventory on December 31.

1,338,500

126000

TMC
Add WIP B
Deduct WIP E

1,370,000
1,464,500
1,338,500

753,500

342,500
274000
1,370,000

Value of X

7,875

Paramus Metal Works for the year just ended


Budgeted direct-labor cost: 75,000 hours (practical capacity) at $16 per hour
Budgted labor hours
Budgted labor Rate
Actual direct-labor cost: 80,000 hours at $17.50 per hour
Actual labor hours
Actual labor Rate
Budgeted manufacturing overhead:
Predetermined Overhead Rate
Budgeted selling and administrative expenses:
Actual manufacturing overhead:
Depreciation
Property taxes
Indirect labor
Supervisory salaries
Utilities
Insurance
Rental of space
Indirect material (see data below)
Indirect material:
Beginning inventory, January 1
Purchases during the year
Ending inventory, December 31
Actual Overhead rate

Overhead as per bidgted rate


Overhead as per actual rate
close out the Manufacturing Overhead account into Cost of Goods Sold

1200000
75000
16
1400000
80000
17.5
997500
13.3
430000
1004000
234000
22000
82000
201000
58000
31000
300000
76000
47,000
93,000
64000
12.55

1064000
1004000
60000

No explanation

Rexford Company

Raw material
Work in process

Finished goods

Direct material purchaed


Raw Material Used

Direct Labour
Predetermined Manufecturing Overhead-60% of Direct Labor
Actual manufacturing overhead

Overapplied overhead

Inventories
Beginning
Ending
134,000
124,000
237,000
251,000
125,000
117,000

191,000

201,000

350,000

210000
175,000

35,000
210,000

Overhead applied to work in process


Total manufecturing costs
Add Work In process beginning
Deduct work in process at end

761,000
998,000
747,000

Cost of good manufectured


Add- Finished goods inventory beginning
Cost of goods available for Sale
deduct- Finished goods inventory end
Cost of good sold
Dedct overapplied overhead
Cost of good sold (adjusted for overapplied overhead)
Actual Selling and administrative expenses

747,000
872,000
872,000
755,000
755,000
720,000
720,000
120,000

Rexford Company

Raw material
Work in process

Finished goods

Direct material purchaed


Direct Material Used
Direct Labour
Overhead applied to work in process

Inventories
Beginning
Ending
227,000
54,000
16,000
548,000
28,000
17,000

173,000
320,000

160,000

Total manufecturing costs


Add Work In process beginning
Deduct work in process at end

653,000
669,000
121,000

Cost of good manufectured


Add- Finished goods inventory beginning
Cost of goods available for Sale
deduct- Finished goods inventory end
Cost of good sold
Sales revenue
Gross Margin

121,000
149,000
149,000
132,000
132,000
195000
63,000

Aquarius Hotel Supply Company

Budgeted sales revenue


Budgeted manufacturing overhead
Budgeted machine hours (based on practical capacity)
Budgeted direct-labor hours (based on practical capacity)
Budgeted direct-labor rate per hour
Actual manufacturing overhead
Actual machine hours
Actual direct-labor hours
Actual direct-labor rate per hour
Budgted Ovehead rate-Machine Hours
Busgted Overhead- Labor Hours
Busgted Overhead- Labor Dollars
Overapplied Machine Hours
Underapplied Labour Hours
Overapplied Labor Rate

205,000
364,000
8,000
20,000
13
338,000
11,000
18,000
16
45.5
18.2
1.4
162,500
10,400
65200

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