Answer:
Instructions are below.
Explanation:
1)
<u>a) First, we need to calculate the total estimated overhead:</u>
Total overhead= 1,100,000 + (5*50,000)= 1,350,000
<u>Now, we can determine the overhead rate:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 1,350,000/50,000
Predetermined manufacturing overhead rate= $27 per machine hour
<u>b) </u>
Job D-75:
Total cost= direct material + direct labor + allocated overhead
Total cost= 700,000 + 360,000 + 27*20,000
Total cost= $1,600,000
Job C-200:
Total cost= 550,000 + 400,000 + 27*30,000
Total cost= $1,760,000
c) Selling price= 150% of manufacturing costs
Job D-75= 1,600,000*1.5= $2,400,000
Job C-200= 1,760,000*1.5= $2,640,000
d) COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 0 + (1,600,000 + 1,760,000) - 0
COGS= $3,360,000
<u>2) </u>
<u>a) </u>
Molding= (800,000/20,000) + 5= $45 per machine hour
Assembly= (300,000/30,000) + 5= $15 per machine hour
<u>b) </u>
Job D-75:
Total cost= 700,000 + 360,000 + 45*20,000
Total cost= $$1,960,000
Job C-200:
Total cost= 550,000 + 400,000 + 15*30,000
Total cost= $1,400,000
<u>c) </u>
Job D-75= 1,960,000*1.5= $2,940,000
Job C-200= 1,400,000*1.5= $2,100,000
<u>d)</u> COGS= 0 + (1,960,000 + 1,400,000) + 0
COGS= $3,360,000
