Solutions prepared by Mazri Hafiz

Question 1 - Required 1

$2,365,000.00
= $0.8 per DL $
$2,956,250.00

Job: Applied Overhead

SZN 1 $784,000.00 (0.8*980,000)
SZN 2 $470,400.00 (0.8*588,000)
SZN 3 $896,000.00 (0.8*1,120,000)
SZN 4 $336,000.00 (0.8*420,000)

Manufacturing Overhead
Rent $800,000.00 $784,000.00 SZN 1
Utilities $600,000.00 $470,400.00 SZN 2
Depreciation $500,000.00 $896,000.00 SZN 3
Property
Insurance $140,000.00 $336,000.00 SZN 4
Indirect Materials $46,500.00
Indirect Labour $300,000.00
Temp Bal of $99,900)
Adjustment of $99,900
Ending Balance $- $-

Adjustment:
Actual MOH < Applied MOH
Overapplied MOH by $99,900
Adjustment: Need to reduce CoGS by $99,900

Question 1 - Required 2

$2,365,000.00 = $10.75 per DL hour

 220,000

Job: Applied Overhead

SZN 1 $752,500.00 (10.75*70,000)
SZN 2 $451,500.00 (10.75*42,000)
SZN 3 $860,000.00 (10.75*80,000)
SZN 4 $322,500.00 (10.75*30,000)

Manufacturing Overhead
Rent $800,000.00 $752,500.00 SZN 1
Utilities $600,000.00 $451,500.00 SZN 2
Depreciation $500,000.00 $860,000.00 SZN 3
Property
Insurance $140,000.00 $322,500.00 SZN 4
Indirect Materials $46,500.00
Indirect Labour $300,000.00
$- $-
Adjustment not
needed
Ending Balance $- $-

Adjustment:
Actual MOH = Applied MOH
No adjustment of CoGS required

Question 1 - Required 3

$2,365,000.00
= $20 per Machine Hr
118,250

Job: Applied Overhead

SZN 1 $600,000.00 (20*30,000)
SZN 2 $200,000.00 (20*10,000)
SZN 3 $800,000.00 (20*40,000)
SZN 4 $300,000.00 (20*15,000)

Manufacturing Overhead
Rent $800,000.00 $600,000.00 SZN 1
Utilities $600,000.00 $200,000.00 SZN 2
Depreciation $500,000.00 $800,000.00 SZN 3
Property
Insurance $140,000.00 $300,000.00 SZN 4
Indirect Materials $46,500.00
Indirect Labour $300,000.00
Temp bal of $486,500
Adjustment of
$486,500
Ending Balance $- $-

Adjustment:
Actual MOH > Applied MOH
Underapplied MOH by $486,500
Adjustment: Need to add $486,500 to CoGS

Question 2 - Required 1

$720,000.00 = $1.2 per Dl

$600,000.00 $

Question 2 - Required 2

Laplante Inc.
Schedule of Cost of Goods Manufactured
Year Ended December 31st 2012

Work In Process - Beginning $332,000.00

Direct Materials
Raw Materials - Beg $40,000.00
Raw Materials - Purchases $800,000.00
Total Materials Available $840,000.00
Less: Indirect Materials $20,000.00
Less: Raw Materials - End $50,000.00
Direct Materials $770,000.00
Direct Labour $660,000.00
Manufacturing Overhead
Applied to FWU $49,200.00
Applied to FWV $120,000.00
Applied to FWW $216,000.00
Applied to FWX $228,000.00
Applied to FWY $106,800.00
Applied to FWZ $72,000.00
Total Applied Manufactured Overhead $792,000.00
Total Manufacturing Cost $2,222,000.00
Total Cost of Work In Process $2,554,000.00
Less: Ending Work In Process $412,000.00
Cost of Goods Manufactured $2,142,000.00

Question 2 - Required 3

Laplante Inc.
Income Statement
Year Ended December 31st 2012

Sales $5,040,000.00
Cost of Goods Sold
Finished Goods - Beg $420,000.00
Cost of Goods Manufactured $2,142,000.00
Goods Available for Sale $2,562,000.00
 Less: Finished Goods - Ending $546,000.00
Cost of Goods Solds $2,016,000.00
Add: Under Applied Manufacturing Overhead $19,000.00
Adjusted Cost of Goods Sold $2,035,000.00
Gross Profit $3,005,000.00
Operating Expenses $2,500,000.00
Operating Income Before Tax $505,000.00
Income Tax Expense $191,900.00
Net Income $313,100.00

Question 2 - Required 4
Ending
Balance Pro-Rata
Work In Process $412,000.00 0.138533961
Finished Goods $546,000.00 0.183591123

Cost of Goods Sold $2,016,000.00 0.677874916

Total $2,974,000.00

Adjustment via proration method:

Actual MOH > Applied MOH
Underapplied MOH by $19,000
Prorate $19,000 underapplied MOH to WIP, F/G, and CoGS

Add $2,660 to WIP, $3,420 to F/G, and $12,920 to CoGS.