Premier Printing, Inc., has not been profitable despite increases in sales. It has hired you to learn why. You turn to the accounting system for data and find it to be a mess. However, you piece together the following information for June:

Production

(1) Completed Job 11.

(2) Started and completed Job 12.

(3) Started Job 13.

Inventory Values

(1) Work-in-process inventory:

May 31: Job 11

Direct materials................................................................... $ 4,000

Labor (960 hours × $20)...................................................... 19,200

June 30: Job 13

Direct materials.................................................................... $ 3,200

Labor (1,040 hours × $20).................................................... 20,800

(2) Each job in work-in-process inventory was exactly 50 percent completed as to labor hours; however, all the direct materials necessary to do the entire job were charged to each job as soon as it was started.

(3) There were no direct materials inventories or finished goods inventories at either May

31 or June 30. Overhead

(1) Actual manufacturing overhead was $40,000.

(2) The company had sold jobs 11 and 12. You find limited information about the cost of these two jobs from a spreadsheet. These two jobs make up the total cost of goods sold (before adjustment for over- or underapplied overhead) for the month of June:

Job 11

Materials......................................................................... $ 4,000

Labor.............................................................................. ?

Overhead........................................................................ ?

Total................................................................................$61,600

Job 12

Materials......................................................................... ?

Labor.............................................................................. ?

Overhead........................................................................ ?

Total............................................................................... ?

(3) Overhead was applied to jobs using a predetermined rate per labor dollar that has been used since the company began operations.

(4) All direct materials were purchased for cash and charged directly to Work-in-Process Inventory when purchased. Direct materials purchased in June amounted to $9,200.

(5) Direct labor costs charged to jobs in June were $64,000. All labor costs were the same per hour for June for all laborers. Write a report to management to show

a. The cost elements (material, labor, and overhead) of cost of goods sold before adjustment for over- or underapplied overhead for each of the two jobs sold.

b. The value of each cost element (material, labor, and overhead) for each job in Work-in-Process Inventory at June 30.

c. Over- or underapplied overhead for June.