Banaag Manufacturing Company uses a job-order cost system in its two producing departments, Assembly and Finishing....

Transcribed Image Text:

Banaag Manufacturing Company uses a job-order cost system in its two producing departments, Assembly and Finishing. Two jobs are in process at the beginning of the year and three more were started during the six-month period ending June 30, 2020. The following were the projected data for 2020. Direct labor hours Machine hours Manufacturing Overhead Assembly 80,000 25,000 #960,000 Finishing 28,000 75,000 $600,000 Banaag applies overhead in the assembly department based on direct labor hours and based on machine hours in the finishing department. Below is the summary of costs incurred in each job and their status as of end of June. Direct labor cost is $5.50 per hour. DL Hrs Mach hrs Alpha Beta Jobs Charlie Delta Echo Bal 1/1 #35,000.00 50,000.00 Assembly Department: 8,000 14,000 9,000 6,000 4,000 1,500 2,500 3,000 2,800 3,200 Materials 25,000.00 30,000.00 $40,000.00 $50,000.00 $25,000.00 Finishing Department: DL Hrs Mach hrs 1,800 6,500 Materials P12,000.00 2,000 11,000 25,000.00 3,500 10,000 30,000.00 3,200 2,800 7,500 3,000 $42,000.00 5,000.00 Job Status Sold Sold Sold On hand Unfinished Required: Determine the following: 1. Overhead rates to be used in applying overhead 2. Total overhead applied to production. 3. Total factory cost 4. The cost of goods manufactured 5. The gross profit assuming the goods are sold at 40% above cost Banaag Manufacturing Company uses a job-order cost system in its two producing departments, Assembly and Finishing. Two jobs are in process at the beginning of the year and three more were started during the six-month period ending June 30, 2020. The following were the projected data for 2020. Direct labor hours Machine hours Manufacturing Overhead Assembly 80,000 25,000 #960,000 Finishing 28,000 75,000 $600,000 Banaag applies overhead in the assembly department based on direct labor hours and based on machine hours in the finishing department. Below is the summary of costs incurred in each job and their status as of end of June. Direct labor cost is $5.50 per hour. DL Hrs Mach hrs Alpha Beta Jobs Charlie Delta Echo Bal 1/1 #35,000.00 50,000.00 Assembly Department: 8,000 14,000 9,000 6,000 4,000 1,500 2,500 3,000 2,800 3,200 Materials 25,000.00 30,000.00 $40,000.00 $50,000.00 $25,000.00 Finishing Department: DL Hrs Mach hrs 1,800 6,500 Materials P12,000.00 2,000 11,000 25,000.00 3,500 10,000 30,000.00 3,200 2,800 7,500 3,000 $42,000.00 5,000.00 Job Status Sold Sold Sold On hand Unfinished Required: Determine the following: 1. Overhead rates to be used in applying overhead 2. Total overhead applied to production. 3. Total factory cost 4. The cost of goods manufactured 5. The gross profit assuming the goods are sold at 40% above cost