SlayLang Company employs a job order costing system. Only three jobs, #105, #106 and #107 were worked
Question:
SlayLang Company employs a job order costing system. Only three jobs, #105, #106 and #107 were worked during May and June, 2020. Job #105 was completed June 10; the other two jobs were still in production on June 30. Job cost sheets on the three jobs follow:
JOB COST SHEET #105
May costs incurred
DM P16,500
DL P13,000
OH P20,800
June costs incurred
DM -
DL P4,000
OH ?
JOB COST SHEET #106
May costs incurred
DM P 9,300
DL P 7,000
OH P11,200
June costs incurred
DM P8,200
DL P6,000
OH ?
JOB COST SHEET #107
May costs incurred
DM -
DL -
OH -
June costs incurred
DM P21,300
DL P10,000
OH ?
The following additional information is available:
- Manufacturing overhead is assigned to jobs on the basis of direct labor cost.
- Indirect materials used during June totaled P4,000
- Indirect labor cost for June totaled P8,000
- Various Manufacturing overhead incurred during June was P19,000
- Balances in the inventory accounts at May 31 were as follows:
Raw Materials P40,000
Work in Process?
Finished Goods 85,000
The overhead resulted to a variance of
Group of answer choices
- I refuse to answer.
- P3,000 underapplied
- P1,000 underapplied
- P3,000 overapplied
- P1,000 overapplied
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young