Problem 4.1: West Manufacturing Inc. (WMI) operates a job-order cost system and applies overhead on the basis of direct laborhours. When preparing the budget for the upcoming fiscal year, the following budget items determined: (1) overhead = $150,000,(2) direct labor hours (DLH) = 8,000 and (3) direct labor dollars (DL$) = $60,000.BeginningEndingInventoryRaw materials (RM)Work in process (WIP)Finished goods (FG)$21,000$86,000$108,000Inventory$16,000$71,500$58,000Actual results:$650,000$133,000$160,00010,000$108,000$165,500Actual salesPurchasesDirect labor $sDirect labor hoursS&AActual MOHRequired:Compute WMI's predetermined overhead rate, applied overhead, and over/under applied overhead.Compute net income using before and after the over/under applied overhead adjustment.Using the Cost Flow Worksheet, compute the inventory turnovers for each inventoryCompute cost of Job 160, where the job required direct labor of $1,200 direct labor hours (average pay rate = $12.00), anddirect material of $4,000.1.2.3.4.Page 5 of 10

Predetermined Overhead rate = Budgeted OverehadBudgeted Labor Hours Note: Since you have posted a…

Problem 4.1: West Manufacturing Inc. (WMI) operates a job-order cost system and applies overhead on the basis of direct labor hours. When preparing the budget for the upcoming fiscal year, the following budget items determined: (1) overhead = $150,000, (2) direct labor hours (DLH) = 8,000 and (3) direct labor dollars (DL$) = $60,000. 田 Raw materials (RM) Work in process (WIP) Finished goods (FG) Beginning Inventory $21,000 $86,000 $108,000 Ending Inventory $16,000 $71,500 $58,000 Actual results: Actual sales $650,000 $133,000 $160,000 Purchases Direct labor $s Direct labor hours 10,000 $108,000 $165,500 S&A Actual MOH Required: 1. Compute WMI's predetermined overhead rate, applied overhead, and over/under applied overhead. 2. Compute net income using before and after the over/under applied overhead adjustment. 3. Using the Cost Flow Worksheet, compute the inventory turnovers for each inventory 4. Compute cost of Job 160, where the job required direct labor of $1,200 direct labor hours (average pay rate = $12.00), and direct material of $4,000.

Problem 4.1: West Manufacturing Inc. (WMI) operates a job-order cost system and applies overhead on the basis of direct labor hours. When preparing the budget for the upcoming fiscal year, the following budget items determined: (1) overhead = $150,000, (2) direct labor hours (DLH) = 8,000 and (3) direct labor dollars (DL$) = $60,000. 田 Raw materials (RM) Work in process (WIP) Finished goods (FG) Beginning Inventory $21,000 $86,000 $108,000 Ending Inventory $16,000 $71,500 $58,000 Actual results: Actual sales $650,000 $133,000 $160,000 Purchases Direct labor $s Direct labor hours 10,000 $108,000 $165,500 S&A Actual MOH Required: 1. Compute WMI's predetermined overhead rate, applied overhead, and over/under applied overhead. 2. Compute net income using before and after the over/under applied overhead adjustment. 3. Using the Cost Flow Worksheet, compute the inventory turnovers for each inventory 4. Compute cost of Job 160, where the job required direct labor of $1,200 direct labor hours (average pay rate = $12.00), and direct material of $4,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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