E2-5
300,000/125,000= 2.4
130,000*2.4= 312,000-322,000= (10,000)
Dr. Cost of Goods Sold 10,000
Cr. MOH 10,000
E2-7
1. Raw Material Inventory 46300
Account Payable 46300
2. WIP 29200
Manufacturing overhead 6800
Raw Material Inventory 36000
NOTE: This question was incomplete in the homework
3. Factory payroll 59900
Wages Payable 51000
Payroll taxes payable 8900
4. WIP 54000
Manufacturing overhead 5900
Factory payroll 59900
5. Manufacturing overhead 80500
Account payable 80500
6. Depreciation 8100
Accumulated Depreciation 8100
7. WIP 72000
Manufacturing overhead applied 72000
8. Finished Goods 88000
WIP 88000
9. Account receivable 103000
Sales 103000
Cost of goods sold 75000
Finished goods 75000
E2-13
960,000/40000= 24
Dr. Service in progress 24*40,500=972000
Operating Overhead 972000
( c) Under applied by (10,800)
Actual- Applied= 982,800- 972,000= -10,800
P2-4A
Predetermined Overhead rate Department D= MOH/Direct Labor Cost= 1200,000/1500,000*100=80%
Predetermined Overhead rate Department E= 1500,000/125,000=$12
Predetermined Overhead rate Department K= 900,000/120,000= $7.50
(b)
D E F
Direct Materials 140,000 126,000 78,000
Direct Labor 120,000 110,000 37500
Overhead applied 96,000
(120,000*80%) 132,000
(11,000*12) 78,000
(10,400*7.50)
Total 356,000 368,000 193,500
(c ) Department D
Actual overhead 99,000
Less: Applied overhead 96,000
Balance: 3,000 (under applied)
Department E
Actual overhead 124,000
Less: Applied overhead 132,000
Balance: 8,000 (over applied)
Department K
Actual overhead 79,000
Less: Applied overhead 78,000
Balance: 1,000 (under applied)
E3-3
Total unites in process at May 31= 400+1600-1700= 300 units
Work in progress may 1= 2040
Costs added = 5160
Total Cost= 7200
Equivalent Units= 2000 (1700+300 (300*100%))...