The following information is for Punta Company for July: Factory overhead costs were applied to jobs at
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Question:
The following information is for Punta Company for July:
- Factory overhead costs were applied to jobs at the predetermined rate of $42.50 per labor hour. Job S incurred 6,175 labor hours; Job T used 4,275 labor hours.
- Job S was shipped to customers during July.
- Job T was still in process at the end of July.
- The overapplied or underapplied overhead to the Cost of Goods Sold account was closed at the end of July.
- Factory utilities, factory depreciation, and factory insurance incurred are summarized as follows:
Utilities | $ 14,250 |
Depreciation | 45,000 |
Insurance | 18,000 |
Total | $ 77,250 |
F. Direct materials and indirect materials used are as follows:
Job S | Job T | Total | |
---|---|---|---|
Material A | $ 28,500 | $ 71,250 | $ 99,750 |
Material B | 12,000 | 35,000 | 47,000 |
Subtotal | $ 40,500 | $ 106,250 | $ 146,750 |
Indirect materials | 211,000 | ||
Total | $ 357,750 |
G. Direct labor incurred for the two jobs and indirect labor are as follows:
Job S | $ 55,500 |
Job T | 45,000 |
Indirect labor | 133,000 |
Total | $ 233,500 |
Required:
- Calculate the total manufacturing cost for Job S and Job T for July.(Round your intermediate calculations and final answers to 2 decimal places.)
- Calculate the amount of overapplied or underapplied overhead and state whether the Cost of Goods Sold account will be increased or decreased by the adjustment.
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