Required: 1. What was the actual factory overhead for Carston Incorporated for the year? 2. What was overapplied or underapplied overhead for the year? 3. Job T114 was the only job completed and sold in the year. What amount was included in the Cost of Goods Sold account for this job? 4. What was the amount of Work-in-Process Inventory at the end of the year?
Required: 1. What was the actual factory overhead for Carston Incorporated for the year? 2. What was overapplied or underapplied overhead for the year? 3. Job T114 was the only job completed and sold in the year. What amount was included in the Cost of Goods Sold account for this job? 4. What was the amount of Work-in-Process Inventory at the end of the year?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 2BE: Direct labor costs During May, Bergan Company accumulated 2,500 hours of direct labor costs on Job...
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Work-in-Process Inventory for Carston Incorporated at the beginning of the year was a single job, Job T114:
Job # | Direct Materials | Direct Labor | Total | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
T114 | $ | 37,000 | $ | 19,000 | $ | 31,500 | $ | 87,500 |
The company’s budgeted costs for the year are as follows:
Budgeted overhead | |
---|---|
Variable | |
Indirect materials | $ 73,500 |
Indirect labor | 61,500 |
Employee benefits | 30,750 |
Fixed | |
Supervision | 15,750 |
17,750 | |
Total | $ 199,250 |
Budgeted direct labor dollars | $ 99,625 |
Rate per direct labor dollar | 200% |
The company’s actual costs incurred during the year are as follows:
Job # | Incurred by Jobs | Total | ||
---|---|---|---|---|
Materials | Labor | Other | ||
T114 | $ 3,100 | $ 11,100 | $ - | $ 14,200 |
T119 | 25,100 | 20,200 | - | 45,300 |
T133 | 9,100 | 36,750 | - | 45,850 |
T136 | 2,100 | 17,650 | - | 19,750 |
$ 39,400 | $ 85,700 | $ 125,100 |
Overhead | Incurred by Jobs | Total | ||
---|---|---|---|---|
Materials | Labor | Other | ||
Indirect materials and supplies | $ 64,400 | - | - | $ 64,400 |
Indirect labor | - | 54,400 | - | 54,400 |
Employee benefits | - | - | 36,850 | 36,850 |
Depreciation | - | - | 17,750 | 17,750 |
Supervision | - | 13,650 | - | 13,650 |
Total | $ 64,400 | $ 68,050 | $ 54,600 | $ 187,050 |
Required:
1. What was the actual factory overhead for Carston Incorporated for the year?
2. What was overapplied or underapplied overhead for the year?
3. Job T114 was the only job completed and sold in the year. What amount was included in the Cost of Goods Sold account for this job?
4. What was the amount of Work-in-Process Inventory at the end of the year?
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