Wagner Printing Inc. began printing operations on July 1. Jobs 7-01 and 7-02 were completed during the
Question:
Wagner Printing Inc. began printing operations on July 1. Jobs 7-01 and 7-02 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 7-03 and 7-04 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $2,000 of indirect materials and $1,650 of indirect labor were used during the month. The cost sheets, in summary form, for the four jobs during the month are as follows:
| Line Item Description | Amount |
|---|---|
| Direct materials | $4,000 |
| Direct labor | 3,600 |
| Factory overhead | 1,620 |
| Total | $9,220 |
| Line Item Description | Amount |
|---|---|
| Direct materials | $5,000 |
| Direct labor | 4,800 |
| Factory overhead | 2,160 |
| Total | $11,960 |
| Line Item Description | Amount |
|---|---|
| Direct materials | $2,700 |
| Direct labor | 1,800 |
| Factory overhead | ? |
| Line Item Description | Amount |
|---|---|
| Direct materials | $1,500 |
| Direct labor | 1,000 |
| Factory overhead | ? |
Determine each of the following for July:
a. Direct and indirect materials used.
| Line Item Description | Amount |
|---|---|
| Direct materials used and transferred to Work in Process | $ |
| Indirect materials used and transferred to Factory Overhead | $ |
b. Direct and indirect labor used.
| Line Item Description | Amount |
|---|---|
| Direct labor used and transferred to Work in Process | $ |
| Indirect labor used and transferred to Factory Overhead | $ |
c. Factory overhead applied (a single overhead rate is used based on direct labor cost).
$
d. Cost of completed Jobs 7-01 and 7-02.
$
e. Assume that in addition to indirect materials and indirect labor, factory overhead of $1,500 was incurred during July. Determine the overapplied or underapplied overhead for March.
$
Expert Answer:
Lets solve each part of this question step by step a Direct and Indirect Materials Used First we calculate the direct materials used by adding together the direct materials for each job For Job 701 40... View the full answer
