Posted: December 14th, 2021

# Chapter 5 homework | Accounting homework help

Developing and Using a Predetermined Overhead Rate
Assume that the following predictions were made for 2009 for one of the plants of Milliken & Company:

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 Total manufacturing overhead for the year \$44,000,000 Total machine hours for the year 2,000,000

Actual results for February 2009 were as follows:

 Manufacturing overhead \$5,480,000 Machine hours 310,000

(a) Determine the 2009 predetermined overhead rate per machine hour.

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(b) Using the predetermined overhead rate per machine hour, determine the manufacturing overhead applied to Work-in-Process during February.

(c) As of February 1, actual overhead was underapplied by \$500,000. Determine the cumulative amount of any overapplied or underapplied overhead at the end of February.

Analyzing Activity in Inventory Accounts
Selected data concerning operations of Cascade Manufacturing Company for the past fiscal year follow:

 Raw materials used \$300,000 Total manufacturing costs charged to production during the year(includes raw materials, direct labor, and manufacturing overheadapplied at a rate of 60 percent of direct labor costs) 681,000 Cost of goods available for sale 826,000 Selling and general expenses 30,000

Inventories
Beginning Ending
Raw materials \$70,000 \$80,000
Work-in-process 85,000 30,000
Finished goods 90,000 110,000

Determine each of the following:

(a) Cost of raw materials purchased

(b) Direct labor costs charged to production

(c) Cost of goods manufactured

(d) Cost of goods sold

Minot Processing Company manufactures one product on a continuous basis in two departments, Processing and Finishing. All materials are added at the beginning of work on the product in the Processing Department. During December 2009, the following events occurred in the Processing Department:

 Units started 16,000 units Units completed and transferred to Finishing Department 15,000 units
 Costs assigned to processing:Raw materials (one unit of raw materialsfor each unit of product started) \$142,900 Manufacturing supplies used 18,000 Direct labor costs incurred 51,000 Supervisors’ salaries 12,000 Other production labor costs 14,000 Depreciation on equipment 6,000 Other production costs 18,000

Minot uses weighted average costing and applies manufacturing overhead to Work-in-Process at the rate of 100 percent of direct labor cost.

Ending inventory in the Processing Department consists of 3,000 units that are one-third converted.

Beginning inventory contained 2,000 units, one-half converted, with a cost of \$41,500 (\$29,900 for materials and \$11,600 for conversion).

(a) Prepare a cost of production report for the Processing Department for December.

Minot Processing Company: Processing Department
Cost of Production Report
For the Month Ending December 31, 2009
Summary of units in process:
Equivalent units in process:   Materials Conversion Total
Total cost to be accounted for and
cost per equivalent unit in process:

Accounting for total costs:
Ending work-in-process:

(b) Prepare an analysis of all changes in Work-in-Process.

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