Business Finance Homework Help

Boyd Corporation is a manufacturer that uses job-order costing . On  January 1, 2024, the company’s inventory balances were as follows:

Raw Materials Inventory 40,000$

Work-in-Process Inventory 18,000$

Finished Goods Inventory35,000$

The  company applies overhead cost to jobs on the basis of direct  labor-hours. For the current year, 2024, the company’s predetermined  overhead rate of $16.25 per direct labor-hour was based on a cost  formula that estimated $650,000 of total manufacturing overhead for an  estimated activity level of 40,000 direct labor-hours. 

Requirement :

1. Compute the predetermined overhead allocation rate for fiscal year 2024. Use the blue shaded areas for inputs. (MOH Tab) 

2. Use Excel to journalize the transactions listed in the Transactions tab for the current year, 2024. (Journal Entries tab) 

3.  Enter the beginning balances for the inventories in the T-accounts.  Assume the rest of the accounts have beginning balances of zero. Post  the journal entries to T-accounts. T-account balances will automatically  calculate except for Manufacturing Overhead. You will need to calculate  the appropriate balance in that account. (T-Accounts tab) 

4. Adjust the manufacturing overhead account. (MOH adj tab)

5. Complete the Schedule of Cost of Goods Manufactured for 2024. 

6. Complete the Cost of Goods Sold schedule for 2024. 

7. Prepare income statements in good form for Boyd for 2024. 

Boyd  makes its product for approximately $3,400 each and sells them for  $5,600 each. Management budgets monthly fixed costs of $530,750 for  sales volumes between 0 and 1,000 units of product. The company sold 500  units in 2024. Use the information given to calculate the following for  2024: 

8. Use the contribution margin approach to prepare a contribution format income statement for Boyd Corporation