Southern Methodist University Operations And Supply Chain Management Assignment Help - Gitano Products

Question - Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis
of direct materials used in production (not on the basis of raw materials purchased). All materials are
classified as direct materials. In computing a predetermined overhead rate at the beginning of the
year, the company’s estimates were: manufacturing overhead cost, $800,000; and direct materials to
be used in production, $500,000. The company has provided the following data in the form of an
Excel worksheet:

Required:
1. a. Compute the predetermined overhead rate for the year.
b. Compute the amount of underapplied or overapplied overhead for the year.
2. Prepare a schedule of cost of goods manufactured for the year.
3. Co ...Read More mpute the Cost of Goods Sold for the year. (Do not include any underapplied or overapplied
overhead in your Cost of Goods Sold figure.) What options are available for disposing of underapplied
or overapplied overhead?
4. Job 215 was started and completed during the year. What price would have been charged to the
customer if the job required $8,500 in direct materials and $2,700 in direct labor cost and the
company priced its jobs at 25% above the job’s cost according to the accounting system?
5. Direct materials made up $24,000 of the $70,000 ending W ork in Process inventory balance.
Supply the information missingbelow: ...Read Less

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