Inventories

Beginning Ending

Raw material 61,000 81,000

Work in process 80,000 30,000

Finished goods 90,000 110,000

Direct material used 318,000

Direct Labour 230,000Manufecturing Overhead-60% of Direct Labor 138000Total manufacturing costs 686,000

Cost of goods available for sale 826,000

30,500

Q1- Raw material purchasedDirect material used 318,000Add Raw material ending 399,000Deduct raw material beginning 338,000 This is raw material purchased during year

Selling and administrative expenses

This is raw material purchased during year

Aquarius Hotel Supply Company

Budgeted sales revenue 205,000Budgeted manufacturing overhead 364,000Budgeted machine hours (based on practical capacity) 10,000Budgeted direct-labor hours (based on practical capacity) 20,000Budgeted direct-labor rate per hour 14Actual manufacturing overhead 340000Actual machine hours 11000Actual direct-labor hours 18000Actual direct-labor rate per hour 16

Predetermined Overhead Rate 36.4Actual Overhead Rate 30.909091

Applied Manufecturing Overhead 400400

Inventories

Beginning Ending

Work in process 94,500 126000

Direct material used

Direct Labour

Manufecturing Overhead-20 percent of total manufacturing costs

Total manufacturing costs

1,338,500

Cherry Hill Glass Company employs a normal costing system

Total manufacturing costs were $1,310,000.

Cost of goods manufactured

• Cost of goods manufactured was $1,275,500.

• Applied manufacturing overhead was 30 percent of total manufacturing costs.

• Manufacturing overhead was applied to production at a rate of 80 percent of direct-labor cost.

• Work-in-process inventory on January 1 was 75 percent of work-in-process inventory on December 31.

TMC 1,370,000Add WIP B 1,464,500Deduct WIP E 1,338,500

753,500

342,500 Value of X 7,875274000

1,370,000

Paramus Metal Works for the year just ended

Budgeted direct-labor cost: 75,000 hours (practical capacity) at $16 per hourBudgted labor hoursBudgted labor Rate

Actual direct-labor cost: 80,000 hours at $17.50 per hourActual labor hoursActual labor Rate

Predetermined Overhead Rate

Actual Overhead rate

Overhead as per bidgted rateOverhead as per actual rateclose out the Manufacturing Overhead account into Cost of Goods Sold

  Budgeted manufacturing overhead:

  Budgeted selling and administrative expenses:

  Actual manufacturing overhead:      Depreciation                 Property taxes      Indirect labor      Supervisory salaries      Utilities      Insurance      Rental of space      Indirect material (see data below)  Indirect material:      Beginning inventory, January 1      Purchases during the year      Ending inventory, December 31

12000007500016

14000008000017.5

99750013.3

430000

10040002340002200082000201000580003100030000076000

47,00093,0006400012.55

1064000100400060000

No explanation

Rexford Company

Inventories

Beginning Ending

Raw material 134,000 124,000

Work in process 237,000 251,000

Finished goods 125,000 117,000

Direct material purchaed 191,000

Raw Material Used 201,000

Direct Labour 350,000

Predetermined Manufecturing Overhead-60% of Direct Labor 210000Actual manufacturing overhead 175,000

Overapplied overhead 35,000Overhead applied to work in process 210,000

Total manufecturing costs 761,000Add Work In process beginning 998,000Deduct work in process at end 747,000

Cost of good manufectured 747,000Add- Finished goods inventory beginning 872,000Cost of goods available for Sale 872,000deduct- Finished goods inventory end 755,000Cost of good sold 755,000Dedct overapplied overhead 720,000Cost of good sold (adjusted for overapplied overhead) 720,000Actual Selling and administrative expenses 120,000

Rexford Company

Inventories

Beginning Ending

Raw material 227,000 54,000

Work in process 16,000 548,000

Finished goods 28,000 17,000

Direct material purchaed 0

Direct Material Used 173,000Direct Labour 320,000

Overhead applied to work in process 160,000

Total manufecturing costs 653,000Add Work In process beginning 669,000Deduct work in process at end 121,000

Cost of good manufectured 121,000Add- Finished goods inventory beginning 149,000Cost of goods available for Sale 149,000deduct- Finished goods inventory end 132,000Cost of good sold 132,000Sales revenue 195000Gross Margin 63,000

Budgeted sales revenue 205,000364,000

8,00020,000

13338,000

11,00018,000

16

Budgted Ovehead rate-Machine Hours 45.5Busgted Overhead- Labor Hours 18.2Busgted Overhead- Labor Dollars 1.4

Overapplied Machine Hours 162,500Underapplied Labour Hours 10,400Overapplied Labor Rate 65200

Aquarius Hotel Supply Company

  Budgeted manufacturing overhead  Budgeted machine hours (based on practical capacity)  Budgeted direct-labor hours (based on practical capacity)  Budgeted direct-labor rate per hour  Actual manufacturing overhead  Actual machine hours  Actual direct-labor hours  Actual direct-labor rate per hour