Required: Note, 1) what was the overapplied or underapplied overhead for the year. 2) Calculate the costs on the job cost sheets for finished ending inventory.
Required: Note, 1) what was the overapplied or underapplied overhead for the year. 2) Calculate the costs on the job cost sheets for finished ending inventory.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Ahmad's Corporation had the following transactions during its first month of operations:
- Purchased raw materials on account, $85,000.
- Raw Materials of $30,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,000 was classified as indirect materials.
Factory labor costs incurred were $100,000 of which time tickets indicated that $84,000 was direct labor and $16,000 was indirect labor.- Other
overhead costs incurred on account were $112,000. - Manufacturing overhead was applied at the rate of 150% of direct labor cost.
- Goods costing $115,000 are still incomplete at the end of the month; the other goods were completed and transferred to finished goods.
- Finished goods costing $100,000 to manufacture were sold on account for $130,000
Required: Note,
1) what was the overapplied or underapplied overhead for the year.
2) Calculate the costs on the job cost sheets for finished ending inventory.
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