Cisneros 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: A12, C46, and M24, of which A12 was started in June. The firm was able to recover only a fragment of its records, as shown below, after a recent virus attack on its computer. 

 

Inventories		July 1	July 31
	Direct Materials	$42,500	?
	Work in Process	$54,000	?
	Finished Goods	$75,000	$196,080

 

Cost of Goods Sold, July			?
Direct Materials Purchased, July			$45,000

 

	Issued to production:	Labor hours used ($30/hr)
Job A12	$21,340	2,800	Completed
Job C46	$26,000	3,800	In processing
Job M24	$16,000	1,700	In processing
Indirect labor		6,900
Total	$63,340	$456,000

 

Other factory overhead costs:
	Rent		$129,500
	Utility		$188,600
	Repairs and maintenance		$194,600
	Depreciation		$127,100
	Other		$176,600
Applied Overhead			$896,400

As of July 31, Job A12 was sold and Jobs C46 and M24 were still in processing. Total factory overhead applied in July was $896,400.

I 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 A12 if it has a total of 100 units?

8. Prepare the statement of cost of goods sold forJuly.