Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $57,000 and its total manufacturing overhead cost to be $91,200.
Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in the second requirement.
predetermined overhead rate is 160 % of direct labor
|
|
| Raw Materials Inventory |
|
Work in Process Inventory |
| Beginning Balance |
13,400 |
79,100 |
|
|
Beginning Balance |
29,700 |
187,700 |
|
| Purchases |
93,800 |
|
|
|
Direct Materials |
69,200 |
|
|
| Ending Balance |
28,100 |
|
|
|
Direct Labor |
$41,500 |
|
|
|
|
Applied Overhead |
66,400 |
|
|
|
Ending Balance |
19,100 |
|
|
|
|
| Finished Goods Inventory |
|
Cost of Goods Sold |
| Beginning Balance |
41,000 |
179,100 |
|
|
Unadjusted Cost of Goods Sold |
179,100 |
|
|
| Cost of Goods Completed |
187,700 |
|
|
|
Adjusted Cost of Goods Sold |
166,200 |
|
|
| Ending Balance |
49,600 |
|
|
|
|
|
| Sales Revenue |
|
Manufacturing Overhead |
|
|
302,000 |
|
|
Indirect Materials |
9,900 |
66,400 |
Applied Overhead |
|
|
Indirect Labor |
15,000 |
|
|
|
Factory Depreciation |
12,300 |
|
|
|
Factory Rent |
5,700 |
|
|
|
Factory Utilities |
1,900 |
|
|
|
Other Factory Costs |
8,700 |
|
|
|
Actual Overhead |
53,500 |
|
|
|
|
| Selling, General, and Administrative Expenses |
|
| Adm. Salaries |
27,000 |
|
|
|
| Office Depreciation |
18,600 |
|
|
|
| Advertising |
14,200 |
|
|
|
| Ending Balance |
59,800 |
|
|
|
|
Over-applied by $12,900.
| DOBSON MANUFACTURING COMPANY |
| Cost of Goods Manufactured and Sold Report |
| Beginning Raw Materials Inventory |
13,400 |
| Plus: Raw Material Purchases |
93,800 |
| Less: Indirect Material Used |
9,900 |
| Less: Ending Raw Materials Inventory |
28,100 |
| Direct Materials Used in Production |
69,200 |
| Direct Labor |
41,500 |
| Manufacturing Overhead |
66,400 |
|
|
| Total Current Manufacturing Costs |
177,100 |
| Plus: Beginning Work in Process Inventory |
29,700 |
| Total Work in Process |
206,800 |
| Less: Ending Work in Process Inventory |
19,100 |
| Cost of Goods Manufactured |
187,700 |
| Plus: Beginning Finished Goods Inventory |
41,000 |
| Cost of Goods Available for Sale |
228,700 |
| Less: Ending Finished Goods Inventory |
49,600 |
| Unadjusted Cost of Goods Sold |
179,100 |
| Adjustment for Overapplied Overhead |
-12,900 |
|
|
| Adjusted Cost of Goods Sold |
166,200 |
|
5. Prepare a brief income statement for the company.
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|
| DOBSON MANUFACTURING COMPANY |
| Income Statement |
| Sales Revenue |
?????? |
| Cost of Goods Sold |
?????? |
| Gross Profit |
?????? |
| Selling, General, and Administrative Expenses |
?????? |
| Net Income from Operations |
?????? |
|
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