[lagb2009]

Gitano Products operates a job-order costing system & applies OH cost to jobs on the basis of DM used in production (not DM purchased). Estimates: MOH cost=$800000, DM used in production= $500000. Actual: Raw Materials, Begining= $20000; End $80,000 Work in Process, Beg=$150000; End=$70000. Finished Goods, Beg=$260,000; End=$400,000. Purchase of raw materials (all direct)=$510000. DL cost=$90,000. Indirect labor=$170000. Property Taxes=$48000. Depreciation of equipment=$260000. Maintenance=$95000. Insurance=$7000. Rent, bldg=$180000.


Questions:1.a. Compute the predetermined OH rate for the year. b. Compute the amount of under- or overapplied OH for the year.

2.Prepare a schedule of COGM for the year.

3. Compute the COGS for the year (not including any under0 or overapplied OH)

this is due tomorrow 9/23 before 4 please any help you can provide me with will be greatly appreaciated.

There's also a spreadsheet attached with this hw if you're willing to help please email me so I can send you it as an attachment.

thanks!

this is what was given to me

GITANO PRODUCTS

Manufacturing overhead cost $800,000
Direct materials to be used $500,000

Inventory: Beginning Ending
Raw materials $20,000 $80,000
Work in process $150,000 $70,000
Finished goods $260,000 $400,000

Actual costs incurred:
Purchase of raw materials (all direct) $133,000
Direct labor cost $80,000
Manufacturing overhead costs:
Indirect labor $170,000
Property taxes $48,000
Depreciation of equipment $260,000
Maintenance $95,000
Insurance $7,000
Rent, building $180,000

Job 215:
Direct materials $8,500
Direct labor cost $2,700
% above job cost according to the
accounting system 25%

Direct materials $24,000
Direct labor hours
Manufacturing overhead
Work in process inventory $70,000

[morgaine300]

I know you're not going to like the answer to this, but we are not here to do your work for you and you really should show us your attempts at doing a problem first. And this isn't something we can really "give hints" for cause it's too long and too many pieces. That would mean explaining one piece at a time, letting you work that out, explaining the next piece, etc. This isn't just something we can explain in a simple post.

That of course would take some time and several posts. The fact that it's due soon was your responsibility.

The best I can do for the moment is give you a link with a sample statement:
http://www.principlesofaccounting.com/chapter%2017.htm#FINANCIAL%20STATEMENTS%20OF%20A%2 0MANUFACTURER

And the one hint that it can sometimes help if you make t accounts for your manufacturing accounts so you can visually follow the flow of the numbers.

[lagb2009]

Hi,

Thanks for taking the time to try to help me out! And I'm sorry I'm just a new user and I'm not quite sure how to attach the spreadsheet in which I have been workign on aand I tried copying and pasting and the only values that was able to copy/paste were the ones give to me. I actually have part 1 a and part 1 b done, my main problem is creating the schedule of COGM for the year.

Our HW has the ability to tell us of our ending numbers are correct or not and for this part it keeps on telling me to "try again", and I have honestly tried many ways. The only reason why I posted the entire problem was because I thought it was necessary for anyone that wanted to answer it to know everything that was given to me.

The website you recommended to me definitely has a lot of information and has helped understand the problem a bit more, but unfortunately I keep plugging numbers in and I'm not being still not being successful.

so now that I have I told you this, would you or anyone else try to help me WITH the schedule of COGM for the year?

Thanks!

[lagb2009]

I finally figured out how to upload what I have done!

sorry I'm just a new user. And I know is due soon but really I have been trying my best on it but nothing seemed to work, out frustration I told a friend about this problem and she recommended friend to try this site, but I had no idea about it.

so again I'm really just stuck on part 2 and I know once I figure the CORRECT value for COGM I'm sure I can figure out the rest of the problem.

TAHNKS! :)

[lagb2009]

..

[morgaine300]

I didn't have an issue with you posting the whole problem -- yes, we do need all the information. In fact, there's not enough information, but I see from the spreadsheet that's all you seem to have.

What they've given is flimsy information and I don't see where you got some of your numbers. By flimsy I mean things like presenting the overhead costs and materials to be used, and then only discovering they're estimated costs and that's the info for figuring the overhead rate. (They should have said estimated! And they should have specified that overhead is based on direct material dollars! I only figured out what that was by process of elimination.)

I see conflicting information. One place it says materials purchased was 133,000. You've entered 510,000. It says it's correct so it must be, but I see no place where that 510,000 comes from. It says 133,000. And then it has one job, fine... but underneath that it's got this 24,000 for direct materials. I have no idea what that information is about cause it doesn't say!

Please tell me you have information outside of just this one page on the Excel file, cause otherwise I'd have to conclude that whoever put it together was a complete idiot. (I wonder if the people who make problems ever let someone else work them to make sure everything's OK. Little something known as "quality control.")

OK, now all of the above is a combination if letting you know why I can't totally help cause the problem is a wreck, and also just a bit of extraneous complaining. :p I know how to do it and I don't understand their information so that's pretty sad.

Anyway, it's a good thing you got that top section right cause I have no clue where half those numbers even came from cause they're not given and can't be calculated. (Where did you get 510,000 for materials when it says 133,000 was purchased?)

The only thing I can do is look for something that "looks funny". One thing I spotted on the COGM report is that you've got total overhead costs for total manufacturing costs. (The 760,000.) Overhead is only one of the three costs. Manufacturing costs consist of direct materials, direct labor and overhead. You have three manufacturing costs -- make sure you have that memorized. But I suspect if you get that fixed, it'll help you with some of the further steps.

If you get stuck after that, just re-send your new work. I can't guarantee anything since the info has an issue.

[morgaine300]

Since you put the problem # on this, meaning it would be easy to check, I decided to see if this was a textbook I happen to have. Coincidentally enough, it's the Garrison, the first one I picked up. So I do have access to the entire problem. I also now know who put the Excel template together. (Person's name and company.)

But I have a question if you wouldn't mind answering. Is the Excel thing exactly the way you sent it to me? That is, everything but your numbers that you inserted into the first sheet. That is, the template itself is exactly how it came, and the "given" sheet is exactly how it came and you didn't mess with it?

Another note -- you've got the direct labor costs wrong. That's given in the problem. (It's in the little Excel picture in the book itself, not on the thing you sent.) You took your number from the top of the page, which not only is direct materials and not labor (more bad quality control), but that's an estimated cost not the actual cost. You need to follow the one in the book itself. That's also part of why you have an incorrect answer.

[lagb2009]

OH my God! Thank you sooooo much for trying to help me! But I'm so sorry you went through all of this trouble in order to help me.

I think you felt as frustrated as I did when I tried soooo many numbers and could not get a correct answer... Well believe it or not when I get to class our faboulous Prof. announces the template that we were using was wrong.
The numbers AND some of the lables were completely different from our book.

She claimed she found this out a couple of hours before our class, but I don't know I was sooo aggravated that she didn't even send us an e-mail about it. Ugggghh.. well either way she uploaded the right template and I was able to figure it out right away.

Again THANK YOU SO MUCH!

[morgaine300]

Well, at least I know I'm not crazy and that the template really is screwed up. And you're right -- I do get frustrated over stuff like that, even when it's not really anything to do with me.

The instructors need to be aware that these things are quite often messed up and they probably should look them over. Students should be able to concentrate on learning, not trying to figure out bad templates.

I am glad you were able to get it solved though. That's the important thing.