ACCT 386 Week 2 Homework 2 There may be chances that the figures given in our question and your question doesn’t matches. Don’t worry, we are here to help you. Just write to us at firstname.lastname@example.org and your answer is with you in no time. Question 1 Savallas Company is highly automated and uses computers to control manufacturing operations. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of computer-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year: Computer-hours 87,000 Fixed manufacturing overhead cost $ 1,279,000 Variable manufacturing overhead per computer-hour $ 3.60 During the year, a severe economic recession resulted in cutting back production and a buildup of inventory in the companyâ€™s warehouse. The companyâ€™s cost records revealed the following actual cost and operating data for the year: Computer-hours 50,000 Manufacturing overhead cost $ 970,000 Inventories at year-end: Raw materials $ 420,000 Work in process $ 190,000 Finished goods $ 1,030,000 Cost of goods sold $ 2,800,000 Question 2 Valenko Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses $ 212,000 Purchases of raw materials $ 263,000 Direct labor ? Administrative expenses $ 150,000 Manufacturing overhead applied to work in process $ 337,000 Total actual manufacturing overhead costs $ 356,000 Inventory balances at the beginning and end of the year were as follows: Beginning of Year End of Year Raw materials $ 60,000 $ 36,000 Work in process ? $ 28,000 Finished goods $ 31,000 ? The total manufacturing costs for the year were $670,000; the cost of goods available for sale totaled $730,000; the unadjusted cost of goods sold totaled $661,000; and the net operating income was $39,000. The companyâ€™s overapplied or underapplied overhead is closed entirely to cost of goods sold. Question 3 Southworth Company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of the cost of direct materials used in production. Its predetermined overhead rate was based on a cost formula that estimated $243,200 of manufacturing overhead for an estimated allocation base of $152,000 direct material dollars. The following transactions took place during the year (all purchases and services were acquired on account): a. Raw materials purchased, $145,000. b. Raw materials requisitioned for use in production (all direct materials), $143,000. c. Utility bills incurred in the factory, $22,000. d. Costs for salaries and wages were incurred as follows: Direct labor $ 216,000 Indirect labor $ 90,200 Selling and administrative salaries $ 142,000 e. Maintenance costs incurred in the factory, $23,000. f. Advertising costs incurred, $121,000. g. Depreciation recorded for the year, $43,000 (70% relates to factory assets, and the remainder relates to selling and administrative assets). h. Rental cost incurred on buildings, $85,000 (80% of the space is occupied by the factory, and 20% is occupied by sales and administration). i. Miscellaneous selling and administrative costs incurred, $13,000. j. Manufacturing overhead cost was applied to jobs, $ ? k. Cost of goods manufactured for the year, $557,000. l. Sales for the year (all on account) totaled $1,300,000. These goods cost $510,000 according to their job cost sheets.
AcademicPaperExperts.com is a platform where students from all over the globe can get assignment assistance. It is our endeavor to provide customized assignments which are authentic for students in the United States, United Kingdom, New Zealand, Australia and other countries around the globe. Our team undergoes thorough training to handle all the inquiries in a professional manner. We do not set the bar in custom essay writing, we are the bar. All the custom papers and essays you order are written by our writers in tandem with your requirements.