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Work-in-Process Finished Goods Cost of Goods Sold Total Balance Relative amount Share of overapplied overhead % % % 0 0.00 % $ 0.00 Dream Makers is a small manufacturer of gold and platinum jewelry. It uses a job costing system that applies overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $497,000, and management budgeted 35,500 direct labor-hours. The company had no Materials, Work-in-Process, or Finished Goods Inventory at the beginning of April. These transactions were recorded during April: April insurance cost for the manufacturing property and equipment was $2,000. The premium had been paid in January. Recorded $1,165 depreciation on an administrative asset. Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect materials). Paid factory utility bill, $6,670, in cash. Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount, 1,000 hours and $20,000 were indirect labor costs. Incurred and paid other factory overhead costs, $6,390. Purchased $26,500 of materials. Direct materials included unpolished semiprecious stones and gold. Indirect materials included supplies and polishing materials. Requisitioned $20,500 of direct materials and $2,000 of indirect materials from Materials Inventory. Incurred miscellaneous selling and administrative expenses, $6,220. Incurred $3,925 depreciation on manufacturing equipment for April. Paid advertising expenses in cash, $2,950. Applied factory overhead to production on the basis of direct labor hours. Completed goods costing $66,000 during the month. Made sales on account in April, $62,250. The Cost of Goods Sold was $51,220. Compute the amount of overapplied or underapplied overhead that should be prorated to Work-in-Process, Finished Goods, and Cost of Goods Sold.

Work-in-Process Finished Goods Cost of Goods Sold Total Balance Relative amount Share of overapplied overhead % % % 0 0.00 % $ 0.00 Dream Makers is a small manufacturer of gold and platinum jewelry. It uses a job costing system that applies overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $497,000, and management budgeted 35,500 direct labor-hours. The company had no Materials, Work-in-Process, or Finished Goods Inventory at the beginning of April. These transactions were recorded during April: April insurance cost for the manufacturing property and equipment was $2,000. The premium had been paid in January. Recorded $1,165 depreciation on an administrative asset. Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect materials). Paid factory utility bill, $6,670, in cash. Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount, 1,000 hours and $20,000 were indirect labor costs. Incurred and paid other factory overhead costs, $6,390. Purchased $26,500 of materials. Direct materials included unpolished semiprecious stones and gold. Indirect materials included supplies and polishing materials. Requisitioned $20,500 of direct materials and $2,000 of indirect materials from Materials Inventory. Incurred miscellaneous selling and administrative expenses, $6,220. Incurred $3,925 depreciation on manufacturing equipment for April. Paid advertising expenses in cash, $2,950. Applied factory overhead to production on the basis of direct labor hours. Completed goods costing $66,000 during the month. Made sales on account in April, $62,250. The Cost of Goods Sold was $51,220. Compute the amount of overapplied or underapplied overhead that should be prorated to Work-in-Process, Finished Goods, and Cost of Goods Sold.

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 17P: Luna Manufacturing Inc. completed Job 2525 on May 31, and there were no jobs in process in the...
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Work-in-Process Finished Goods Cost of Goods Sold Total Balance Relative amount Share of overapplied overhead % % % 0 0.00 % $ 0.00
Transcribed Image Text:Work-in-Process Finished Goods Cost of Goods Sold Total Balance Relative amount Share of overapplied overhead % % % 0 0.00 % $ 0.00
Dream Makers is a small manufacturer of gold and platinum jewelry. It uses a job costing system that applies overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $497,000, and management budgeted 35,500 direct labor-hours. The company had no Materials, Work-in-Process, or Finished Goods Inventory at the beginning of April. These transactions were recorded during April: April insurance cost for the manufacturing property and equipment was $2,000. The premium had been paid in January. Recorded $1,165 depreciation on an administrative asset. Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect materials). Paid factory utility bill, $6,670, in cash. Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount, 1,000 hours and $20,000 were indirect labor costs. Incurred and paid other factory overhead costs, $6,390. Purchased $26,500 of materials. Direct materials included unpolished semiprecious stones and gold. Indirect materials included supplies and polishing materials. Requisitioned $20,500 of direct materials and $2,000 of indirect materials from Materials Inventory. Incurred miscellaneous selling and administrative expenses, $6,220. Incurred $3,925 depreciation on manufacturing equipment for April. Paid advertising expenses in cash, $2,950. Applied factory overhead to production on the basis of direct labor hours. Completed goods costing $66,000 during the month. Made sales on account in April, $62,250. The Cost of Goods Sold was $51,220. Compute the amount of overapplied or underapplied overhead that should be prorated to Work-in-Process, Finished Goods, and Cost of Goods Sold.
Transcribed Image Text:Dream Makers is a small manufacturer of gold and platinum jewelry. It uses a job costing system that applies overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $497,000, and management budgeted 35,500 direct labor-hours. The company had no Materials, Work-in-Process, or Finished Goods Inventory at the beginning of April. These transactions were recorded during April: April insurance cost for the manufacturing property and equipment was $2,000. The premium had been paid in January. Recorded $1,165 depreciation on an administrative asset. Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect materials). Paid factory utility bill, $6,670, in cash. Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount, 1,000 hours and $20,000 were indirect labor costs. Incurred and paid other factory overhead costs, $6,390. Purchased $26,500 of materials. Direct materials included unpolished semiprecious stones and gold. Indirect materials included supplies and polishing materials. Requisitioned $20,500 of direct materials and $2,000 of indirect materials from Materials Inventory. Incurred miscellaneous selling and administrative expenses, $6,220. Incurred $3,925 depreciation on manufacturing equipment for April. Paid advertising expenses in cash, $2,950. Applied factory overhead to production on the basis of direct labor hours. Completed goods costing $66,000 during the month. Made sales on account in April, $62,250. The Cost of Goods Sold was $51,220. Compute the amount of overapplied or underapplied overhead that should be prorated to Work-in-Process, Finished Goods, and Cost of Goods Sold.
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