Haughton Company uses a job costing system for its production costs and a predetermined factory overhead rate
Question:
Haughton Company uses a job costing system for its production costs and a predetermined factory overhead rate based on direct labor costs to apply factory overhead to all jobs. During the month of July, the firm processed three jobs: X13, X14, and X15, of which X13 was started in June
As of July 31, Job X13 was sold and Jobs X14 and X15 were still in processing.
Total factory overhead applied in July was $900,600.
Required
1. Compute the predetermined factory overhead rate.
2. Compute the amount of materials inventory at the end of July.
3. Compute the actual factory overhead cost incurred during the month of July.
4. Compute the ending balance of the work-in-process inventory account for July.
5. Prepare the statement cost of goods manufactured for July.
6. Compute the amount of over- or under-applied overhead.
7. What is the cost per unit of Job X13 if it has a total of 100 units?
8. Prepare the statement of cost of goods sold for July.
Step by Step Answer:
Cost Management A Strategic Emphasis
ISBN: 978-0077733773
7th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins