Curry Corp. uses a job order costing system and worked only on Job 101 during the current period. Job 101 was sold for $490,000. The following information pertains to costs incurred for Job 202. Additional Facts Direct materials $90,000 Indirect materials $30,000 Direct labor $120,000 Indirect labor $65,000 Depreciation of machinery $12,000 Factory supplies $8,000 Overhead rate 95% of direct labor After adjusting for the amount of over- or underapplied overhead, determine the amount of gross profit earned during the year. Three responses are required. Clearly indicate: 1.) Indicate whether the overhead is Over- or underappl 2.) The amount overhead is Over- or underapplied and, 2.) Gross Profit or (Loss) $.
Curry Corp. uses a job order costing system and worked only on Job 101 during the current period. Job 101 was sold for $490,000. The following information pertains to costs incurred for Job 202. Additional Facts Direct materials $90,000 Indirect materials $30,000 Direct labor $120,000 Indirect labor $65,000 Depreciation of machinery $12,000 Factory supplies $8,000 Overhead rate 95% of direct labor After adjusting for the amount of over- or underapplied overhead, determine the amount of gross profit earned during the year. Three responses are required. Clearly indicate: 1.) Indicate whether the overhead is Over- or underappl 2.) The amount overhead is Over- or underapplied and, 2.) Gross Profit or (Loss) $.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Job Order Costing and Analysis Essay Question
Curry Corp. uses a job order costing system and worked only on Job
101 during the current period. Job 101 was sold for $490,000. The
following information pertains to costs incurred for Job 202.
Additional Facts
Direct materials
$90,000
Indirect materials
$30,000
Direct labor
$120,000
Indirect labor
$65,000
Depreciation of machinery $12,000
Factory supplies
$8,000
Overhead rate
95% of direct labor
After adjusting for the amount of over- or underapplied overhead,
determine the amount of gross profit earned during the year.
Three responses are required. Clearly indicate:
1.) Indicate whether the overhead is Over- or underapplied
2.) The amount overhead is Over- or underapplied
%$.
and,
2.) Gross Profit or (Loss) $_
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