The following information is for Punta Company for July: 

a. Factory overhead costs were applied to jobs at the predetermined rate of $42.50 per labor hour. Job S incurred 6,175 labor hours; Job T used 4,275 labor hours.

b. Job S was shipped to customers during July.

c. Job T was still in process at the end of July.

d. The overapplied or underapplied overhead to the Cost of Goods Sold account was closed at the end of July.

e. Factory utilities, factory depreciation, and factory insurance incurred are summarized as follows:

Utilities ................................... $14,250
Depreciation ............................ 45,000
Insurance ................................. 18,000
Total ........................................ $77,250

f. Direct materials and indirect materials used are as follows:

g. Direct labor incurred for the two jobs and indirect labor are as follows:

Job S .................................... $ 55,500
Job T ....................................... 45,000
Indirect labor ...................... 133,000
Total ................................... $233,500

Required

1. Calculate the total manufacturing cost for Job S and Job T for July.

2. Calculate the amount of overapplied or underapplied overhead and state whether the Cost of Goods Sold account will be increased or decreased by the adjustment.

Transcribed Image Text:

Job S Job T Total $28,500 12,000 $ 71,250 $ 99,750 47,000 Material A Material B 35,000 Subtotal $40,500 $106,250 $146,750 Indirect materials 211,000 Total $357,750