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?
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