(Solved) The following account balances at the beginning of January were selected from the general ledger of

The following account balances at the beginning of January were selected from the general ledger of Ocean City Manufacturing Company:

Work in process inventory   $0
Raw materials inventory   $28,000
Finished goods inventory   $40,000

Additional data:
1. Actual manufacturing overhead for January amounted to $62,000.
2. Total direct labor cost for January was $63,000.
3. The predetermined manufacturing overhead rate is based on direct labor cost. The budget for the year called for $250,000 of direct labor cost and $350,000 of manufacturing overhead costs.
4. The only job unfinished on January 31 was Job No. 151, for which total direct labor charges were $5,200 (800 direct labor hours) and total direct material charges were $14,000.
5. Cost of direct materials placed in production during January totaled $123,000. There were no indirect material requisitions during January.
6. January 31 balance in raw materials inventory was $35,000.
7. Finished goods inventory balance on January 31 was $34,500.

What is the predetermined manufacturing overhead rate?
A) 71%
B) 99%
C) 140%
D) 70%

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2025 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.

The following account balances at the beginning of January were selected from the general ledger of

Managerial Accounting

Related Topics