Managerial Accounting

Chapter 3 Solutions, 3rd day
Exercise 3-13 (15 minutes) 1. | Actual manufacturing overhead costs | | $ 48,000 | | Manufacturing overhead applied:
10,000 MH × $5 per MH | | 50,000 | | Overapplied overhead cost | | $ 2,000 | | | | | 2. | Direct materials: | | | | Raw materials inventory, beginning | $ 8,000 | | | Add: Purchases of raw materials | 32,000 | | | Raw materials available for use | 40,000 | | | Deduct: Raw materials inventory, ending | 7,000 | | | Raw materials used in production | | $ 33,000 | | Direct labor | | 40,000 | | Manufacturing overhead cost applied to work in process | | 50,000 | | Total manufacturing cost | | 123,000 | | Add: Work in process, beginning | | 6,000 | | | | 129,000 | | Deduct: Work in process, ending | | 7,500 | | Cost of goods manufactured | | $121,500 | | | | |

Problem 3-24 (60 minutes) 1. a.

b. | Actual manufacturing overhead costs: | | | Insurance, factory | $ 7,000 | | Depreciation of equipment | 18,000 | | Indirect labor | 42,000 | | Property taxes | 9,000 | | Maintenance | 11,000 | | Rent, building | 36,000 | | Total actual costs | 123,000 | | Applied manufacturing overhead costs: $80,000 × 150% | 120,000 | | Underapplied overhead | $ 3,000 | | | |

2. Pacific Manufacturing Company
Schedule of Cost of Goods Manufactured | Direct materials: | | | Raw materials inventory, beginning | $ 21,000 | | Add: Purchases of raw materials | 133,000 | | Total raw materials available | 154,000 | | Deduct: Raw materials inventory, ending | 16,000 | | Raw materials used in production | | $138,000 | Direct labor | | 80,000 | Manufacturing overhead applied to work in process | | 120,000 | Total manufacturing cost | | 338,000 |

Add: Work in process,