Barrymore Costume Company, located in New York City, sews costumes for plays and musicals. Barrymore considers itself
Question:
Job 32 was the only job in process at the end of the first quarter. A total of 1,000 direct labor hours at $10 per hour were charged to Job 32.
Required:
1. Assuming that overhead is applied on the basis of direct labor cost, what was the overhead rate used during the first quarter of the year?
2. What was the applied overhead for the first quarter? The actual overhead? The under- or overapplied overhead?
3. What was the cost of the goods manufactured for the quarter?
4. Assume that the overhead variance is closed to the cost of goods sold account. Prepare the journal entry to close out the overhead control account. What is the adjusted balance in Cost of Goods Sold?
5. For Job 32, identify the costs incurred for direct materials, direct labor, and overhead.
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
Step by Step Answer:
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen