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    Weighted-Average Methods for Peace Mfg Company

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    Peace Mfg. Co. incurred the following costs in January:
    Direct Labor $ 40,000 Advertising Costs $ 1,000
    Factory Utilities 15,000 Factory Rent 4,000
    Administrative Salaries 8,000 Factory Depreciation 2,000
    Raw Materials Purchased 10,000 Administrative Rents 3,000
    Factory Insurance 4,000 Administrative Depreciation 1,000
    The following information is also available:
    Number of Units Produced 9,000 units
    Number of Units Sold (sales price of $25 per unit) 10,000 units
    Tax Rate 15% flat rate
    Beginning Balance Ending Balance
    Raw Materials $ 2,000 $ 4,000
    Work-in-Progress 25,000 18,000
    Finished Goods 4,000 12,000

    Answer the following:
    A) Calculate total period costs.
    B) Calculate total raw materials used.
    C) Calculate cost of goods manufactured.
    D) Calculate the product cost per unit.
    E) Calculate cost of goods sold.
    F) Calculate net income.

    and

    Nuts and Bolts Company assigns overhead to specific jobs based on machine hours. At the beginning of the current year, estimated overhead costs were $2,150,000 and estimated machine hours were 500,000. By the end of the year, actual overhead costs were calculated to be $2,000,000 and actual machine hours were 475,000.
    Answer the following:
    A) Calculate the predetermined overhead rate.
    B) How much overhead would be applied to particular job that required 215 machine hours?
    C) How much total overhead was applied during the year?
    D) By how much was overhead over- or under-applied for the year? Note: Be sure to indicate whether it was over- or under-applied.

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    Hi - thanks for requesting me. I can't complete this for you, as it would be against the assignment completion policy at BrainMass. I will explain each area and show you how to derive the exact calculations you need.
    - Mary
    Peace Mfg. Co. incurred the following costs in January:
    Direct Labor $ 40,000 Advertising Costs $ 1,000
    Factory Utilities 15,000 Factory Rent 4,000
    Administrative Salaries 8,000 Factory Depreciation 2,000
    Raw Materials Purchased 10,000 Administrative Rents 3,000
    Factory Insurance 4,000 Administrative Depreciation 1,000
    The following information is also available:
    Number of Units Produced 9,000 units
    Number of Units Sold (sales price of $25 per unit) 10,000 units
    Tax Rate 15% flat rate
    Beginning Balance Ending Balance
    Raw Materials $ 2,000 $ 4,000
    Work-in-Progress 25,000 18,000
    Finished Goods 4,000 12,000

    Answer the following:
    A) Calculate total ...

    Solution Summary

    This solution provides the correct calculations for the Peace Manufacturing Company case study in an attached Word document.

    $2.19