Answer: Please see answer below
Explanation:
a)Predetermined Overhead rate = Estimated manufacturing overhead/Estimated direct materials cost x 100
=124,600/89,000 = 1.4 x100 =140%
b) Amount of underapplied or overapplied overhead of the year
we first calculate amount of direct materials
Beginning Raw Materials = 27,000
Purchase Of Raw Materials=139,000
Total Raw Materials =166,000
Ending Raw Materials=$13,000
Direct Materials Used In Production = Total Raw Materials –Ending Raw Materials= 166,000-13,000= 153,000
Direct materials will now be used To Calculate Underapplied Or Overapplied Overhead
Indirect Labour=$127,000
Property Taxes= $8,880
Depreciation On EquipmenT= $18,000
Maintenance= $12,000
Insurance $11,300
Rent, building=$40,000
Total Manufacturing overhead incurred =$217,180
Manufacturing overhead applied or used=140%x 153,000=214,200
Underapplied overhead= 217,180-214,200= $2,980
c)Schedule of cost of Goods Manufactured for the year
Beginning Raw Materials = $27,000
Purchase Of Raw Materials=$139,000
Total Raw Materials =$166,000
Ending Raw Materials=$13,000
Direct Raw Materials Used In Production = Total Raw Materials –Ending Raw Materials= 166,000-13,000= $153,000
Direct labor cost=$85,000
Manufacturing Overhead =140%X 153,000=$214,200
Total Manufacturing Costs=Direct Raw Materials+ Direct Labor cost+ Manufacturing Overhead
153,000+ 85,000+214,200=$452,200
Cost Of Goods Manufactured= Total Manufacturing Cost+ Work In Progress Beginng --Work In Progress End = $452,200+$46,000-$36,000= $462,200
d)Unadjusted cost of goods sold
Finished Goods at Begining Balance $71,000
Cost Of Goods Manufactured =$462,200
Cost of goods for sale=Finished Goods at Begining Balance + Cost Of Goods Manufactured = $533,200
Unadjusted cost of goods sold = cost of goods sold---ending balance of finished goods=$533,200- $56,000=$477,200
e) Assume that the $36,000 ending balance in Work in Process includes $8,000 of direct materials, find the manufacting overhead and direct labour.
i)Manufacturing overhead applied on the assumed direct materials= Direct materials cost x Predetermined overhead rate
= 8,000x 140% = $11,200
ii)Direct labour cost incurred on the assumed work in progress inventory balance= Total work in progress--Direct Materials-Manufacturing overhead
=$36,000-$8,000-$11,200 =$16,800
