Curtis Inc uses a job order costing system. Manufacturing
overhead is applied on the basis of direct labor cost. Total
manufacturing overhead was estimated to be $45,510 for the year;
direct labor was estimated to total $151,700.
| (1/1) | (12/31) | |||||
| Raw Materials Inventory | $ | 10,400 | $ | 12,500 | ||
| Work in Process Inventory | $ | 23,600 | $ | 17,400 | ||
| Finished Goods Inventory | $ | 34,300 | $ | 39,400 | ||
The following transactions have occurred during the year.
| Raw materials purchases | $ | 116,000 |
| Direct materials used | $ | 107,000 |
| Direct labor | $ | 147,700 |
| Indirect materials used | $ | 6,900 |
| Indirect labor | $ | 16,900 |
| Factory equipment depreciation |
$ | 24,000 |
| Factory rent | $ | 19,300 |
| Factory utilities | $ | 8,100 |
| Other factory costs | $ | 7,000 |
(a) Calculate the predetermined overhead
rate.
(b) Calculate cost of goods manufactured.
(c) Calculate the over- or underapplied overhead.
(Input all amounts as positive values.)
(d) Calculate adjusted cost of goods
sold.
