The following information applies to the O€™Donnell Company for March production. There are only two jobs (X and Y) in production in March.

a. Purchased direct materials and indirect materials with the following summary of receiving reports:

Material A.....................$16,000
Material B.......................12,000
Indirect materials............3,000
Total..............................$31,000

b. Issued direct materials and indirect materials with this summary of requisitions:

c. Factory labor incurred is summarized by these time tickets:

Job X..............................$22,000
Job Y................................15,000
Indirect labor.................28,000
Total..............................$65,000

d. Factory utilities, factory depreciation, and factory insurance incurred is summarized as follows:

Utilities....................................$ 3,000
Depreciation............................18,000
Insurance...................................2,500
Total.......................................$23,500

e. Factory overhead costs were applied to jobs at the predetermined rate of $46 per machine hour. Job X incurred 1,100 machine hours; Job Y used 800 machine hours.

f. Job X was completed; Job Y was still in process at the end of March.

The company closed the overapplied or underapplied overhead to the Cost of Goods Sold account at the end of March.

Required
1. Calculate the total manufacturing cost for Job X and Job Y for March.

2. Calculate the amount of overapplied or underapplied overhead and state whether the Cost of Goods Sold account will be increased or decreased by the adjustment.

Transcribed Image Text:

Total Job Y Job X Material A Material B Subtotal Indirect materials Total $ 8,000 $16,000 $24,000 8,000 11,000 3,000 $11,000 $24,000 $35,000 39,000 $74,000