Cost accounting problems | Accounting homework help
Factory overhead for the Praeger Company has been estimated as follows:
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Nonvariable overhead
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$122,500
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Variable overhead
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$90,000
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|
|
|
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Budgeted direct labor hours
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42,500
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Production for the month was 90 percent of the budget, and actual factory overhead totaled $175,000.
Calculate:
a. The predetermined factory overhead rate.
b. The under- or overapplied factory overhead.
Problem 2
The Tidle Manufacturing Company uses a job order cost system. Factory wages are paid on a straight hourly basis with indirect labor getting $8.50 an hour and direct labor getting $10.00 an hour.
During the week of January 7, the following hours were worked:
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Direct
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Indirect
|
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Cutting Department
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2,200
|
250
|
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Splicing Department
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2,400
|
200
|
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Sanding Department
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1,850
|
125
|
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Joining Department
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4,250
|
325
|
Salaries and wages are paid weekly, with administrative salaries totaling $16,500 and salesperson’s salaries totaling $12,200.
The following deductions are to be considered:
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FICA tax
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8.0%
|
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Federal income tax
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12.0%
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State income tax
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2.0%
|
|
Federal unemployment tax
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1.0%
|
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State unemployment tax
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5.0%
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Prepare journal entries to record:
a. The payroll.
b. The payment of the payroll.
c. The payroll distribution.
d. The employer’s payroll tax expense.
Problem 3
The Outdoor Manufacturing Company produces sporting equipment. The company maintains a single raw materials inventory account for both direct and indirect materials. The following information came from the factory ledger accounts for December:
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Raw Materials, December 1
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$ 45,500
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Work in Process, December 1
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125,000
|
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Finished Goods, December 1
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175,000
|
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Raw materials purchases (during December)
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623,000
|
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Direct labor
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435,000
|
|
Repairs and maintenance
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37,200
|
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Indirect materials
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16,700
|
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Utilities
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63,200
|
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Indirect labor
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38,200
|
|
Supervisors’ salaries
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18,300
|
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Raw Materials, December 31
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43,600
|
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Work in Process, December 31
|
135,000
|
|
Finished Goods, December 31
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150,000
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Compute the cost of direct materials used during the month of December.
Problem 4
The following inventory data relate to the Reta Company:
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INVENTORIES
|
|
||
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Beginning
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Ending
|
||
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Finished goods
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$80,000
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$100,000
|
||
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Work in process
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65,000
|
70,000
|
||
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Direct materials
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60,000
|
64,000
|
||
Revenues and costs for the period:
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Sales
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$740,000
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|
Cost of goods available for sale
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650,000
|
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Total manufacturing costs
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575,000
|
|
Factory overhead
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154,000
|
|
Direct materials used
|
164,000
|
|
Selling and administrative expenses
|
51,000
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Compute the following for the year:
a. Direct materials purchased
b. Direct labor costs incurred
c. Cost of goods sold
d. Gross profit
