Question : 108. Greenlaw Products uses job order costing and applies overhead to : 1291672

 

108. Greenlaw Products uses job order costing and applies overhead to products using direct labor hours. Greenlaw has determined that their predetermined overhead is $4.00 per direct labor hour when an estimated 200,000 direct labor hours are incurred.During 2011 Greenlaw actually incurred a total of 215,000 direct labor hours and actual overhead costs ended up being $900,000.Greenlaw has no ending work-in-process or finished goods inventories.Required: 

A.

What were Greenlaw’s estimated total overhead costs for the year?

 

 

B.

By how much was overhead over- or underapplied?

 

 

C.

Assuming that cost of goods sold was $3,000,000 prior to the adjustment for over- or underapplied overhead, what will be the cost of goods sold amount after the year-end adjustment?

 

 

 

 

 

109. Collins Inc. applies overhead using direct labor hours. The following data are available for the year: 

Estimated direct labor hours

1,050,000

Actual direct labor hours

1,000,000

Overhead applied

$5,000,000

Actual overhead

$4,850,000

 

 

What predetermined overhead rate did Collins use? 

 

110. Sherrell Inc. applies overhead using direct labor hours. The following data are available for the year: 

Estimated direct labor hours

170,000

Actual direct labor hours

160,000

Actual overhead

$600,000

 

 

At the end of the year, it was determined that overhead was overapplied by $40,000.Required: 

A.

What was the total applied overhead for the year?

 

 

B.

What was the predetermined overhead rate?

 

 

 

111. Hudson Manufacturing uses process costing. The following information was available for the current year: 

Number of units in beginning work-in-process inventory

5,000

(20% complete)

Number of units started in the current period

60,000

 

Number of units in ending work-in-process inventory

8,000

(60% complete)

 

 

 

Required: 

A.

If Hudson uses the first-in, first-out (FIFO) method, calculate total equivalent units for the year.

 

 

B.

If Hudson uses the weighted-average method, calculate total equivalent units for the year.

 

 

 

112. Koole Products Inc. uses the first-in, first-out (FIFO) method of process costing. The following information was available for the current year: 

 

Numberof units

 

ProductionCosts

Beginning work-in-process (80% complete)

1,000

 

$    6,400

Units started in the current period

70,000

 

548,800

Ending work-in-process (60% complete)

4,000

 

 

 

 

 

 

Required: 

A.

How many total equivalent units were completed during the year?

 

 

B.

What was the cost per equivalent unit?

 

 

C.

What is the cost allocated to the ending work-in-process units?

 

 

D.

What is cost of goods manufactured for the year?