Chapter 3 Formula Supplement
Please note:
X = times (multiply)
Ex. 3-28
Job-Cost Sheet
Total Direct Material Cost = Total Qty. x Unit Price
Total Direct Labor Cost = Hours x Rate
Manufacturing Overhead = Quantity x Application Rate
Cost Summary
Total Cost = Total D.M. Cost + Total D.L. Cost + M.O
Unit Cost = Total Cost
# of units completed
Shipping Summary
# Units Completed - Units Remaining in Inventory = Units Shipped
Cost Balance = Units Remaining in Inventory X Unit Cost
Ex 3-29
1.
Applied manufacturing overhead = total manufacturing costs X application rate (30% here, this number is given—bullet 3)
Applied manufacturing overhead = direct-labor cost X Application rate (here 80%)
In this problem you are trying to solve for the direct-labor cost (therefore, it is the unknown). You know the applied manufacturing overhead from the first formula. Thus, you need to divide both sides by the application rate to isolate the direct-labor cost
Thus, you get the following formula:
Direct-labor cost = Applied manufacturing overhead / 80%
2.
Direct-material cost = total manufacturing cost - D.L. cost - applied M.O.
3.
Total man. cost + Work-in-process - work-in-process = Cost of Goods man.
end beginning
Ex. 3-36:
Predetermined overhead rate = budgeted overhead
budgeted production volume
This fomula means budgeted overhead divided by budgeted prod. vol.
The following formula works on this problem because this firm has a single product, overhead is applied on the basis of output units, chickens raised and sold.
budgeted overhead = budgeted fixed costs + (budgeted variable costs X volume-based
cost driver)Prob. 3-43
Cost of Goods Manufactured and Cost of Goods Sold
Direct Material:
Beginning Materials Inventory [date] $_______.__
Add: Purchases _______.__
Subtotal — Materials available _______.__
Less: Ending Material Inventory _______.__
Cost of Materials Used $ ______.__
Direct Labor:
_____D.L. Hours X $ ______ each ______.__
Overhead (Allocated on D.L. hours)
_____D.L. Hours X $ ______ each ______.__
Total Current Manufacturing Costs ______.__
Add: Beginning Work-in-Process Inventory [date] ______.__
Total Manufacturing Costs ______.__
Less: Ending Work-in-Process Inventory [date] (______.__)
Cost of Goods Manufactured $ ______.__
Add: Beginning Finished Goods Inventory [date] ______.__
Total Goods Available for Sale (CGM and Beg. FG Inv.) ______.__
Less: Ending Finished Goods [date] (______.__)
Cost of Goods Sold $ ______.__
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