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The following are incomplete manufacturing cost data.
Determine the missing amounts these three independent situations.
Direct
Materials Used Direct Labor
Manufacturing
Overhead
Total
Manufacturing
Costs
(1) $51,200 $77,600 $64,000 $
(2) $ $96,000 $179,200 $380,800
(3) $70,400 $ $141,600 $396,800
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(a)
(b)
The parts of this question must be completed in order. This part will be available when you
complete the part above.
Larkspur Company has the following data: direct labor $263,800, direct materials used $226,800,
total manufacturing overhead $263,000, and beginning work in process $31,500.
Compute total manufacturing costs.
Total manufacturing costs $
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The following information is available for Windsor Company.
April 1 April 30
Raw materials inventory $12,200 $17,500
Work in process inventory 6,100 4,900
Materials purchased in April $120,400
Direct labor in April 97,600
Manufacturing overhead in April 195,200
Prepare the cost of goods manufactured schedule for the month of April 2022. (Assume that all raw materials used were direct
materials.)
WINDSOR COMPANY
Cost of Goods Manufactured Schedule
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$
$
:
$
:
$
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(a)
Crane Decorating uses a job order cost system to collect the costs of its interior decorating business. Each client’s consultation is
treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred. Listed below are data
for the current year.
Estimated overhead costs $688,800
Actual overhead costs $704,052
Estimated decorator hours 32,800
Actual decorator hours 33,210
The company uses the account Operating Overhead in place of Manufacturing Overhead, and the account Service Contracts in
Process in place of Work in Process Inventory.
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(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.
(c)
The parts of this question must be completed in order. This part will be available when you complete the part above.
Compute the predetermined overhead rate.
Predetermined overhead rate $ per decorator hour
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Larkspur Express reports the following costs and expenses in June 2022 for its delivery service.
Indirect materials used $6,680 Drivers’ salaries $16,640
Depreciation on delivery equipment 11,600 Advertising 4,880
Dispatcher’s salary 5,200 Delivery equipment repairs 312
Property taxes on of�ce building 940 Of�ce supplies 676
CEO’s salary 12,480 Of�ce utilities 1,040
Gas and oil for delivery trucks 2,240 Repairs on of�ce equipment 198
Determine the total amount of (a) delivery service (product) costs and (b) period costs.
Delivery service (product) costs $
Period costs $
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(a)
Marin Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio system
markets, Marin decided to turn its retail store into an audio equipment factory. Production began October 1, 2022.
Direct materials costs for an audio system total $77 per unit. Workers on the production lines are paid $15 per hour. An audio
system takes 7 labor hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to
$5,960 per month. Indirect materials cost $5 per system. A supervisor was hired to oversee production; her monthly salary is
$3,760.
Factory janitorial costs are $2,190 monthly. Advertising costs for the audio system will be $9,160 per month. The factory building
depreciation is $6,120 per year. Property taxes on the factory building will be $9,000 per year.
Assuming that Marin manufactures, on average, 1,500 audio systems per month, enter each cost item on your answer sheet,
placing the dollar amount per month under the appropriate headings. Total the dollar amounts in each of the columns.
Product Costs
Cost Item
Direct
Materials
Direct
Labor
Manufacturin
Overhead
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Direct materials
$ $ $
Wages for workers
Rent on equipment
Indirect materials
Factory supervisor’s salary
Janitorial costs
Advertising
Depreciation on factory building
Property taxes on factory building
$ $ $
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(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.
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In January, Sandhill Company requisitions raw materials for production as follows: Job 1 $1,120, Job 2 $1,360, Job 3 $760, and
general factory use $680.
Prepare a summary journal entry to record raw materials used. (List all debit entries before credit entries. Credit account titles are
automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Jan. 31
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Crane Company estimates that annual manufacturing overhead costs will be $738,000. Estimated annual operating activity bases
are direct labor cost $410,000, direct labor hours 41,000, and machine hours 82,000.
Compute the predetermined overhead rate for each activity base. (Round answers to 2 decimal places, e.g. 10.50% or 10.50.)
Overhead rate per direct labor cost %
Overhead rate per direct labor hour $
Overhead rate per machine hour $
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During the current month, Cullumber Company incurs the following manufacturing costs.
(a) Purchased raw materials of $15,200 on account.
(b) Incurred factory labor of $33,600.
(c) Factory utilities of $2,540 are payable, prepaid factory insurance of $2,260 have expired, and depreciation on the
factory building is $8,000.
Prepare journal entries for each type of manufacturing cost. (List all debit entries before credit entries. Credit account titles are
automatically indented when amount is entered. Do not indent manually.)
No. Account Titles and Explanation Debit Credit
(a)
(Purchases of raw materials on account)
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(b)
(To record factory labor costs)
(c)
(To record overhead costs)
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In March, Oriole Company completes Jobs 10 and 11. Job 10 cost $17,600 and Job 11 $26,400. On March 31, Job 10 is sold to the
customer for $30,800 in cash.
Journalize the entries for the completion of the two jobs and the sale of Job 10. (List all debit entries before credit entries. Credit
account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Mar.
31
(To record the completion of the two jobs)
31
(To record the sale Job 10)
31
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(To record the cost of the job sold)
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