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nelurumenda Ajob order cost sheet for Ryan Company is shown below. Job No.92 For 2,000 Units oport Direct Materials Date Dire
Unit cost ($52,600 2,000) $26.30 (a) On the basis of the foregoing data, answer the following questions. (1) What was the bal
E mendation automatically indented when amount is entered. Do not indent manually.) In Date Account Titles and Explanation
Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimated to tota
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Answer #1
a-1)
Beginning direct materials $6,400
Beginning direct labor $7,000
Beginning Manufacturing Overhead $4,900
Beginning Work-in Process Inventory $18,300
a-2) Last Year Current Year
Manufacturing Overhead (a) ($7,500 + $3,000) $4,900 $10,500
Direct Labor (b) ($10,000 + $4,000) $7,000 $14,000
Overhead rate (a/b*100) 70% 75%
2)
Date Account Titles and Explanation Debit Credit
Jan. 31 Work-in Process Inventory $9,800
   Direct Materials ($7,000 + $2,800) $9,800
(To record the usage of direct materials)
Jan. 31 Work-in Process Inventory $14,000
   Direct Labor ($10,000 + $4,000) $14,000
(To record the usage of direct labor)
Jan. 31 Work-in Process Inventory $10,500
   Manufacturing Overheads ($7,500 + $3,000) $10,500
(To record the manufacturing overheads)
Jan. 31 Finished Goods Inventory $52,600
   Work-in Process Inventory ($16,200 + $21,000 + $15,400) $52,600
(To record job completed)
Total estimated overheads (a) $344,025
Total estimated machine hours (b) 125,100
Manufaturing overhead rate (a/b) $2.75
Actual manufacturing overheads incurred (a) $366,875
Applied manufacturing overheads ($2.75 * 130,100) (b) $357,775
Underapplied overheads rate (a - b) $9,100
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