Consider the following financial information for a manufacturer that applies overhead to production jobs using pounds of direct materials as the allocation base. The company's facility is 100,000 square feet in total with 83,000 square feet dedicated to the manufacturing operations. The company writes off over/under applied overhead using the method covered in lecture and purchases all raw materials on account from vendor, Z Co.

 

(*) total building operating cost not including depreciation the total value of the building depreciation is listed separately in the above data.

Consider that the company has only a single factory job in process at 12/31/X1. The job was started in X1 and included $110,000 of Direct Materials with a total weight of 4,400 pounds. True or False, the job had $360,000 of direct labor charged to it during the twelve months ended 12/31/20X1.

True

False

Transcribed Image Text:

Reported Account Balances: 1/1/20x1 12/31/20x1 $? Raw Materials $85,000 Work In Process $415,000 $470,000 Finished Goods $325,000 $290,000 Accounts Payable-Z Co. $115,000 $135,000 Manufacturing Data (for the 12 months ended 1231/2011) Budgeted Actual Purchases of Materials $635,000 S695,000 Requisitions of Direct Materials S600,000 $640,000 Requisitions of Indirect Materials $60,000 $62,000 25,600 2,480 Materials: Pounds of Direct Materials (Requisitioned) 24,000 Pounds of Indirect Materials (Requisitioned) 2,400 Labor: Budgeted Actual Non-Factory Labor S370,000 $400,000 Factory- Direct Labor $300,000 $286,000 Factory- Indirect Labor $30,000 $33,000 Budgeted Actual Depreciation- Building $50,000 $50,000 Depreciation-Factory Equipment $50,000 $70,000 Depreciation- Non Factory Equipment $40,000 $40,000 Operating Cost-Building (*) $180,000 $200,000 Other: Reported Account Balances: 1/1/20x1 12/31/20x1 $? Raw Materials $85,000 Work In Process $415,000 $470,000 Finished Goods $325,000 $290,000 Accounts Payable-Z Co. $115,000 $135,000 Manufacturing Data (for the 12 months ended 1231/2011) Budgeted Actual Purchases of Materials $635,000 S695,000 Requisitions of Direct Materials S600,000 $640,000 Requisitions of Indirect Materials $60,000 $62,000 25,600 2,480 Materials: Pounds of Direct Materials (Requisitioned) 24,000 Pounds of Indirect Materials (Requisitioned) 2,400 Labor: Budgeted Actual Non-Factory Labor S370,000 $400,000 Factory- Direct Labor $300,000 $286,000 Factory- Indirect Labor $30,000 $33,000 Budgeted Actual Depreciation- Building $50,000 $50,000 Depreciation-Factory Equipment $50,000 $70,000 Depreciation- Non Factory Equipment $40,000 $40,000 Operating Cost-Building (*) $180,000 $200,000 Other:

Answer rating: 100% (QA)

False Explanation The job had 360000 of direct labor ... View the full answer