Acct 2012 APII

Chapter 19 Assignment

Spring 2019

Use Excel to complete both of the following exercises.

At the end of April, Cavy Company had completed Jobs 766 and 765. The individual job cost sheets reveal the following information:

Job	Direct Materials	Direct Labor	Machine Hours
Job No. 765	$5,670	$3,500	27
Job No. 766	8,900	4,775	44

Job 765 produced 152 units, and Job 766 consisted of 250 units. Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $200 per hour, determine the (a) balance on the job cost sheets for each job and (b) the cost per unit at the end of April.

Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine hours for the year were 54,300 hours. The actual factory overhead for the year was $1,348,800.

(a)	Determine the total factory overhead amount applied.
(b)	Calculate the over- or underapplied amount for the year.
(c)	Prepare the journal entry to close Factory Overhead into Cost of Goods Sold.