The books of Torrent Company show the following account balances as of March 1: The work in process account is supported by the following job order cost sheets: During March, the following transactions occurred:(a) Purchase of materials, $41,000.(b) Purchase of special materials was $5,800 for new Job 207, which calls for 4,000 life jackets.(c) Indirect labor cost was $12,480. Direct

The books of Torrent Company show the following account balances as of March 1:
The books of Torrent Company show the following account balances

The work in process account is supported by the following job order cost sheets:

The books of Torrent Company show the following account balances

During March, the following transactions occurred:
(a) Purchase of materials, $41,000.
(b) Purchase of special materials was $5,800 for new Job 207, which calls for 4,000 life jackets.
(c) Indirect labor cost was $12,480. Direct labor was as follows:

The books of Torrent Company show the following account balances

(d) Materials issued:
Job 204 ...................$ 9,480
Job 205 ...................11,320
Job 206 ...................10,490
Job 207 ...................16,640*
*Excluding $5,800 of special materials, which are also issued at this time.
(e) Other factory overhead incurred or accrued (for brevity, credit the entire amount to Various Credits):

The books of Torrent Company show the following account balances

(f) Factory overhead is applied at the rate of $2.30 per direct labor hour. An applied factory overhead account is used and is then closed to the overhead control account.
(g) Job 204 was shipped and billed at a contract price of $117,500.
Required:
(1) Construct ledger accounts, inserting beginning balances and entering transactions for March. (Factory overhead incurred is to be posted to the control account only.)
(2) In itemized form, compute the total cost of each job at the end of March.
(3) Determine the amount of over- or underapplied factory overhead remaining in the overhead control account.

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Related Book For answer-question

Cost Accounting

14th edition

Authors: William K. Carter

ISBN: 978-0759338098