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Question: jerry corp applies overhead based on direct labor dollars at...

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Jerry Corp applies overhead based on Direct labor Dollars. At the beginning of 2018, they estimated $100,000 of manufacturing overhead and $50,000 in direct labor. Actual Manufacturing Overhead for 2018 was $115,000 and actual Direct Labor was $55,000. The following account balances are taken from Jerrys General Ledger. Raw Materials Inventory 1/1/18 Work in Process Inventory 1/1/18 Finished Goods Inventory 1/1/18 Purchases Direct Labor Selling Expenses Administrative Expenses Raw Materials Inventory 12/31/18 Work in Process Inventory 12/31/18 Finished Goods Inventory 12/31/18 Sales $10,000 20,000 30,000 90,000 55,000 15,000 25,000 $15,000 25,000 40,000 500,000 Required 1. 2. 3. 4. Compute the Predetermined Overhead rate and use it to compute under or over applied overhead for 2018. Prepare a statement of Cost of Goods Manufactured. Prepare a statement of Cost of Goods Sold. Prepare an income statement for 2018. Ignore income taxes.
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