EXERCISE 3-15 (30 MINUTES)

1. a. Raw Materials... 325,000

Accounts Payable ... 325,000

b. Work in Process... 232,000

Manufacturing Overhead ... 58,000

Raw Materials ... 290,000

c. Work in Process... 60,000

Manufacturing Overhead ... 120,000

Wages and Salaries Payable ... 180,000

d. Manufacturing Overhead ... 75,000

Accumulated Depreciation ... 75,000

e. Manufacturing Overhead ... 62,000

Accounts Payable ... 62,000

f. Work in Process... 300,000

Manufacturing Overhead ... 300,000

Estimated total manufacturing overhead cost

Predetermined = overhead rate Estimated total amount of the allocation base

$4,800,000

= = $20 per MH