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247) The following account balances at the beginning of January

Question : 247) The following account balances at the beginning of January : 1876928

247) The following account balances at the beginning of January were selected from the general ledger ofBluestone Industries:

Work in process inventory$0

Raw materials inventory$30,900

Finished goods inventory$54,800

Additional data:

1.  Actual manufacturing overhead for January amounted to $80,500.

2.  Total direct labor cost for January was $70,000; actual direct labor hours for January were 4,200.

3.  The predetermined manufacturing overhead rate is based on direct labor hours. The budget for the year called for $350,000 of direct labor cost and $425,000 of manufacturing overhead costs. Estimated direct labor hours for the year were expected to be 20,000.

4.  The only job unfinished on January 31 was Job No. 449, for which total direct labor charges were $22,000 (1,200 direct labor hours) and total direct material charges were $17,600.

5.  Cost of direct materials placed in production during January totaled $129,500. There were no indirect material requisitions during January.

6.  January 31 balance in raw materials inventory was $30,000.

7.  Finished goods inventory balance on January 31 was $44,700.

Required:

a) Determine the predetermined manufacturing overhead rate.

b) Determine the amount of materials purchased during January.

c) Determine cost of goods manufactured for January.

d) Determine the work in process inventory balance on January 31.

e) Determine cost of goods sold for January.

f) Determine whether manufacturing overhead is overallocated or underallocated and by what amount at Jan. 31.

Solution
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Accounting 10 Months Ago 15 Views
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