Dobson Manufacturing Company Assignment

Dobson Manufacturing Company Assignment

Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $57,000 and its total manufacturing overhead cost to be $91,200.

Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in the second requirement.

predetermined overhead rate is 160 % of direct labor

Raw Materials InventoryWork in Process Inventory
Beginning Balance13,40079,100Beginning Balance29,700187,700
Purchases93,800Direct Materials69,200
Ending Balance28,100Direct Labor$41,500
Applied Overhead66,400
Ending Balance19,100
Finished Goods InventoryCost of Goods Sold
Beginning Balance41,000179,100Unadjusted Cost of Goods Sold179,100
Cost of Goods Completed187,700Adjusted Cost of Goods Sold166,200
Ending Balance49,600
Sales RevenueManufacturing Overhead
302,000Indirect Materials9,90066,400Applied Overhead
Indirect Labor15,000
Factory Depreciation12,300
Factory Rent5,700
Factory Utilities1,900
Other Factory Costs8,700
Actual Overhead53,500
Selling, General, and Administrative Expenses
Adm. Salaries27,000
Office Depreciation18,600
Ending Balance59,800

Over-applied by $12,900.

Cost of Goods Manufactured and Sold Report
Beginning Raw Materials Inventory13,400
Plus: Raw Material Purchases93,800
Less: Indirect Material Used9,900
Less: Ending Raw Materials Inventory28,100
Direct Materials Used in Production69,200
Direct Labor41,500
Manufacturing Overhead66,400
Total Current Manufacturing Costs177,100
Plus: Beginning Work in Process Inventory29,700
Total Work in Process206,800
Less: Ending Work in Process Inventory19,100
Cost of Goods Manufactured187,700
Plus: Beginning Finished Goods Inventory41,000
Cost of Goods Available for Sale228,700
Less: Ending Finished Goods Inventory49,600
Unadjusted Cost of Goods Sold179,100
Adjustment for Overapplied Overhead-12,900
Adjusted Cost of Goods Sold166,200

5. Prepare a brief income statement for the company.

Income Statement
Sales Revenue??????
Cost of Goods Sold??????
Gross Profit??????
Selling, General, and Administrative Expenses??????
Net Income from Operations??????

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