At the beginning of September certain ledger accounts in the books and records of the Mayfair Products Company, Inc. had these balances: 

                            Debit         Credit 

Work in Process $1,010 

Materials              3,690 

Accrued Payroll                    $436 

The balance in the work in process account is supported by these details appearing in the job order cost sheets: 

Direct materials                  $320 

Direct labor (150 hours)     $450 

Factory overhead applied  $240 

Total                                   $1,010 

Certain columnar totals in the accounts payable register at the end of September show: 

Accounts payable $13,820 (credit) 

Purchase discounts lost $108 (debit) 

Materials $5,300 (debit) 

Accrued payroll $4,352 (debit) 

Income taxes withheld $478 (credit) 

Materials requisitions indicate:

For production $4,270 

For repairs and maintenance $250 

For factory supplies $600 

The labor distribution sheet shows:

Direct labor (for job orders), 2,000 hours $6,000 

Factory overhead: 

Foreman's salary $800 

Repairs and maintenance $180 

Indirect labor $600  

Total $7,580 

The finished orders for the month consist of: 

Direct materials                 $4,030 

Direct labor (1,910 hours) $5,730 

Factory overhead applied $3,056 

Total                                  $12,816 

The following subsidiary accounts and their balances controlled by the I factory overhead control account appear in the ledger as of September 30: 

Foreman’s salary $800

Factory $150 

Repairs and maintenance $430

Light and Power $160 

Indirect labor $600

Water and Heat $150 

Factory Supplies $600

Payroll Taxes $1,137 

Depreciation-Factory Equipment $120 

Recent- Factory $200  

At the end of the month the three incomplete production (job) orders can be summarized as follows: 

Materials                           $560 

Direct labor (240 hours)    $720 

Factory overhead applied $384 

Total                                  $1,664 

Required: 

(1) A statement of the cost of goods manufactured for the month of September. 

(2) A calculation of the over- or - underapplied factory overhead for the month of September.

Answer rating: 100% (QA)

1 Cost of Goods Manufactured Statement Direct Materials Beginning Materials Inventory 3690 Add Purch... View the full answer