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Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $59,600 and its total manufacturing overhead cost to be $95,360.
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Several incomplete general ledger accounts showing the transactions that occurred during the most recent accounting period follow:
Calculate the predetermined overhead rate.
predetermined overhead rate= _____________ %of direct labor cost
2- Fill the missing values in the T-accounts (only boxes with question marks)
1-raw materials inventory
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Beginning balance
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14,200
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?
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purchases
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93,500
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?
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Ending Balance
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29,200
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?
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2-Finished good inventory
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Beginning balance
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40,900
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?
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cost of goods completed
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?
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Ending Balance
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40,900
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sales revenue
3-Selling,general and administrative expenses
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Adm Salaries
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25,800
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office depreciation
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19,400
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advertising
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13,800
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ending balance
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60,000
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4-Work in process inventory
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Beg balance
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29,200
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direct materials
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70,000
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direct labor
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14,900
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applied overhead
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?
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ending balance
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18,300
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5-cost of goods sold
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unadjusted cost of goods sold
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?
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adjusted cost of goods sold
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?
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6-
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indirect materials
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8,500
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?
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applied overhead
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indirect labor
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13,800
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factory depreciation
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12,500
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factory rent
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6,400
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factory utilities
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1,500
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other factory costs
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9,300
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actual overhead
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52,000
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