16. Krissy Company uses job order cost system. Thefollowing transactions were completed in January, whichwas the first month of operations:Received direct materials and supplies costingP20,000Materials and supplies were requisitioned as follows:Direct materialsJob 1Р3,0004,0001,000Job 2P8,0001,000Factory payroll was distributed as follows:Job 3Indirect materialsDirect laborP2,0003,0004,0002,000Other indirect manufacturing costs totaledJob 1(200 hrs)Job 2(300 hrs)Job 3(400 hrs)9,000Indirect laborР3,000Indirect manufacturing costs are applied on the basisof direct labor hours.The budget for 2020 included 9,000 direct labor hoursand a total overhead budget of P63,000.What is the factory overhead under or over applied?

Solution:- Calculation of the factory overhead under or over applied as follows:- First we need to…

Answered: 16. Krissy Company uses job order cost…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Barnes Company uses a job order cost system. The following data summarize the operations related to production for October: October 1 Materials purchased on account, $663,320. Materials requisitioned, $618,780, of which $71,310 was for general factory use. Factory labor used, $640,350, of which $88,200 was indirect. Other costs incurred on account for factory overhead, $140,430; selling expenses, $245,050; and administrative expenses, $145,440. 2 31 31 31 31 31 31 31 Prepaid expenses expired for factory overhead were $30,100; for selling expenses, $27,880; and for administrative expenses, $18,590. Depreciation of office building was $86,490; of office equipment, $45,350; and of factory equipment, $30,880. Factory overhead costs applied to jobs, $365,760. Jobs completed, $1,017,410. Cost of goods sold, $911,220.
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