Question

Name All questions are worth 20 points I. A job order cost sheet for Ryan Company is shown below Date Beg, bal. Jan. 1$ 5,000 6,000 Job No. 92 Direct Materials Direct Labor Manufacturing Overhead For 2,000 Units 4,800 4,000 12 8,000 5,600 27 4,000 2,800 $18,000 $13,200 $14,000 Cost of completed job: Direct materials Direct labor Manufacturing overhead $14,000 18,000 13.200 $45,200 Total cost a) What was the balance in Work in Process Inventory on January 1 if this was the only unfinished job? b)lf manufacturing overhead is applied on the basis of direct labor cost, what overhead rate was used in t prior year and in the current year? PRIOR YEAR CURRENT YEAR c. What is the unit cost of production? Il. Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhesa are estimated to total $400,000 for the year, and machine usage is estimated at 150,000 hours. For the year, $385,000 of overhead costs are incurred and 160,000 hours are used. a) What is the pre-determined manufacturing overhead rate for the year b) What is the amount of under-or overapplied overhead at December 31? e) Was the overhead over applied or under applied?

Answer 1

a.) Balance in Work in Process inventory would ne the amount of cost applied till the date of Januray 1.
Balance in Work in Process =
	Cost of Direct Material			$5,000.00
	Cost Of Labour			$6,000.00
	Cost of OH			$4,800.00
			TOTAL COST	$15,800.00	ANS
b.)
Prior Year OH Rate		Cost of Beginning Balance of Direct Labour Hour
		Cost of Begging Balance of OH
		4800
		6000
		0.8	ANS
Current Year OH Rate		Cost of Direct Labour Hour
		Cost of OH
		5600+2800
		8000+4000
		8400
		12000
		0.7	ANS
c.) Unit Cost Of Production		Total Cost
		No. of Units
		45200
		2000
		22.6	ANS
II.)
Pre Determined Manufacturing OH Rate				400000
				150000
				2.67	ANS
Amount of Overhead Overapplied			(160000*2.67) - 385000
			42200	ANS
Overhead was OverApplied			ANS

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