Heritage Company uses a job-order costing system to assign costs to jobs. It had no work in process or finished goods inventories on hand at the beginning of May. The table below provides data concerning the only three jobs worked on in May. Job X Job Y Job Z Direct labor hours 200 80 120 Direct materials $ 4,800 $ 1,800 $ 3,600 Direct labor $ 2,400 $ 1,000 $ 1,500 Jobs X and Y were completed in May; however, only 150 of the 200 units included in Job X were sold in May, whereas all 100 of Job Y’s units were sold in May. Job Z was not completed by the end of the month. Overhead costs are applied to jobs based on direct labor-hours, and the predetermined overhead rate is $45 per direct labor-hour. The company’s total applied overhead always equals its total actual overhead. Required: Compute the amount of overhead cost that would have been applied to each job during May. Compute the work in process inventory that would be reported in the company’s May 31 balance sheet. Compute the finished goods inventory that would be reported in the company’s May 31 balance sheet. Compute the cost of goods sold that would be reported in the company’s income statement for May. NEED ALL QUESTIONS ANSWERED PLEASE!

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

Compute the amount of overhead cost that would have been applied to each job during May.
Compute the work in process inventory that would be reported in the company’s May 31 balance sheet.
Compute the finished goods inventory that would be reported in the company’s May 31 balance sheet.
Compute the cost of goods sold that would be reported in the company’s income statement for May.

NEED ALL QUESTIONS ANSWERED PLEASE!

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