Darkside Company gathered the following information for the year ended December 31: Direct labor cost incurred for the year Estimated manufacturing overhead costs Estimated direct labor cost Work in process inventory, Dec. 31 Finished goods inventory, Dec. 31 Cost of goods sold Estimated direct labor hours $180,800 $264,100 $212,100 $51,900 $63,600 $141,600 260,200 What would the predetermined manufacturing overhead rate for the year be using direct labor cost as the allocation base? OA. 117% of direct labor cost OB. 101% of direct labor cost OC. 125% of direct labor cost OD. 85% of direct labor cost

Darkside Company gathered the following information for the year ended December 31: Direct labor cost incurred for the year Estimated manufacturing overhead costs Estimated direct labor cost Work in process inventory, Dec. 31 Finished goods inventory, Dec. 31 Cost of goods sold Estimated direct labor hours $180,800 $264,100 $212,100 $51,900 $63,600 $141,600 260,200 What would the predetermined manufacturing overhead rate for the year be using direct labor cost as the allocation base? OA. 117% of direct labor cost OB. 101% of direct labor cost OC. 125% of direct labor cost OD. 85% of direct labor cost

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 17E: Cost flow relationships The following information is available for the first month of operations of...

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Cushing, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. What was last years per unit product cost? a. 1.39 b. 4.40 c. 4.43 d. 3.01
OReilly Manufacturing Co.s cost of goods sold for the month ended July 31 was 345,000. The ending work in process inventory was 90% of the beginning work in process inventory. Factory overhead was 50% of the direct labor cost. No indirect materials were used during the period. Other information pertaining to OReillys inventories and production for July is as follows: Required: 1. Prepare a statement of cost of goods manufactured for the month of July. (Hint: Set up a statement of cost of goods manufactured, putting the given information in the appropriate spaces and solving for the unknown information. Start by using cost of goods sold to solve for the cost of goods manufactured.) 2. Prepare a schedule to compute the prime cost incurred during July. 3. Prepare a schedule to compute the conversion cost charged to Work in Process during July.
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Refer to the data in Problem 6.31. Assume that the FIFO method is used. Required: 1. Prepare a physical flow schedule. 2. Calculate equivalent units of production for direct materials and conversion costs. 3. Compute unit cost. Round to three decimal places. 4. Calculate the cost of goods transferred to Painting at the end of the month. Calculate the cost of ending inventory.
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