Handy Widget Co. does a wide variety of metalwork on a custom basis. During the month of June 2012, it worked on six jobs. A summary of the job cost sheets on these jobs is given below:

Handy Widget has used the same overhead rate on all jobs. Job No. 43 was the only job in process at the beginning of the month. At that time, it had incurred direct labour costs of $150 and total costs of $570.
Instructions
Answer the following questions:
(a) What is the predetermined overhead rate that the Handy Widget Co. uses?
(b) Assume that during June the factory overhead was over-applied by $600. What was the actual factory overhead cost incurred during the month?
(c) What was the total amount of direct materials placed into production during June?
(d) How much direct labour cost was incurred during June?
(e) What was the cost of goods manufactured for June?
(f) The beginning finished goods inventory was $2,550. What was the cost of goods sold for the month if the ending finished goods inventory was $3,550?

Transcribed Image Text:

Total Cost of Job 1,058 Factory Overhead Job No. Materials Labour 6 $ 288 48* $3,540 $2,832 $10,562 Ending work in process