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ptember 1, inventories Materials inventory Work-in-process inventory (All Job A) Finished goods inventory terial purchases rect materials requisitioned Joh $ 8,100 32,400 70,000 113,000

ptember 1, inventories Materials inventory Work-in-process inventory (All Job A) Finished goods inventory terial purchases rect materials requisitioned Joh $ 8,100 32,400 70,000 113,000

FINANCIAL ACCOUNTING
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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S Johnson Incorporated is a job-order manufacturing company that uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 90,000 and estimated factory overhead is $540,000. The following information is for September of the current year. Job A was completed during September, and Job B was started but not finished. September 1, inventories Materials inventory Work-in-process inventory (All Job A) Finished goods inventory Material purchases Direct materials requisitioned Job A Job B Direct labor hours Job A Job B Labor costs incurred Direct labor ($8.00/hour) Indirect labor Supervisory salaries Rental costs Factory Administrative offices Total equipment depreciation costs Factory Administrative offices Indirect materials used Required: 1. What is the total cost of Job A? $ 8,100 32,400 70,000 113,000 71,000 36,500 4,800 4,100 71,200 14, 100 6,600 7,600 2,400 8,400 2,500 12,600 2. What is the total factory overhead applied during September? 3. What is the overapplied or underapplied overhead for September?
Transcribed Image Text:S Johnson Incorporated is a job-order manufacturing company that uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 90,000 and estimated factory overhead is $540,000. The following information is for September of the current year. Job A was completed during September, and Job B was started but not finished. September 1, inventories Materials inventory Work-in-process inventory (All Job A) Finished goods inventory Material purchases Direct materials requisitioned Job A Job B Direct labor hours Job A Job B Labor costs incurred Direct labor ($8.00/hour) Indirect labor Supervisory salaries Rental costs Factory Administrative offices Total equipment depreciation costs Factory Administrative offices Indirect materials used Required: 1. What is the total cost of Job A? $ 8,100 32,400 70,000 113,000 71,000 36,500 4,800 4,100 71,200 14, 100 6,600 7,600 2,400 8,400 2,500 12,600 2. What is the total factory overhead applied during September? 3. What is the overapplied or underapplied overhead for September?
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