Exercise 5-4. APPLIED FACTORY OVERHEAD During the month of July, the company worked on four orders, three of which were completed. Costs and other pertinent data in connection with these orders are: Job 701 Job 702 Job 703 Job 704 Direct materials P 30,000 P 52,500 P 45,300 P 22,600 Direct labor P 85,100 P 58,400 P 42,500 P 28,600 Direct labor hours 50,000 45,000 15,000 12,000 There was no beginning work in process in July. The company applies factory overhead to production at the rate of 90% of direct labor cost. Actual overhead for the month amounted to P186,720. Jobs 701, 702, and 703 were completed. Jobs 701 and 702 were delivered and the customers billed in the amounts of P210,700 and P180,200 respectively. REQUIRED: Entries in general journal form to record: Actual overhead cost incurred Total applied overhead cost charged to production Cost of completed units (use three work in process accounts; show computation) Sale of completed units and Cost of sales Over- or underapplied factory overhead (Not closed out until the end of the year)
Exercise 5-4. APPLIED FACTORY
During the month of July, the company worked on four orders, three of which were completed.
Costs and other pertinent data in connection with these orders are:
Job 701 Job 702 Job 703 Job 704
Direct materials P 30,000 P 52,500 P 45,300 P 22,600
Direct labor P 85,100 P 58,400 P 42,500 P 28,600
Direct labor hours 50,000 45,000 15,000 12,000
There was no beginning work in process in July. The company applies factory overhead to
production at the rate of 90% of direct labor cost. Actual overhead for the month amounted to
P186,720. Jobs 701, 702, and 703 were completed. Jobs 701 and 702 were delivered and the
customers billed in the amounts of P210,700 and P180,200 respectively.
REQUIRED: Entries in general journal form to record:
- Actual overhead cost incurred
- Total applied overhead cost charged to production
- Cost of completed units (use three work in process accounts; show computation)
- Sale of completed units and Cost of sales
- Over- or underapplied factory overhead (Not closed out until the end of the year)
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