Wagner Printing Inc. began printing operations on July 1. Jobs 7-01 and 7-02 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 7-03 and 7-04 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $1,030 of indirect materials and $3,600 of indirect labor were used during the month. The cost sheets, in summary form, for the four jobs during the month are as follows: Job 7-01 Job 7-02 Direct materials 10,630 Direct materials 4,970 Direct labor 4,100 Direct labor 2,100 Factory overhead 2,255 Factory overhead 1,155 Total 16,985 Total 8,225 Job 7-03 Job 7-04 Direct materials 13,680 Direct materials 3,060 Direct labor 4,500 Direct labor 600 Factory overhead ? Factory overhead ? Determine each of the following for July: a. Direct and indirect materials used. Direct materials used and transferred to Work in Process $fill in the blank 1 Indirect materials used and transferred to Factory Overhead $fill in the blank 2 b. Direct and indirect labor used. Direct labor used and transferred to Work in Process $fill in the blank 3 Indirect labor used and transferred to Factory Overhead $fill in the blank 4 c. Factory overhead applied (a single overhead rate is used based on direct labor cost). $fill in the blank 5 d. Cost of completed Jobs 7-01 and 7-02. $fill in the blank 6 e. Assume that in addition to indirect materials and indirect labor, factory overhead of $1,800 was incurred during July. Determine the overapplied or underapplied overhead for July. produce a solution
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Determining
Wagner Printing Inc. began printing operations on July 1. Jobs 7-01 and 7-02 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 7-03 and 7-04 are still in process at the end of the month, and all applicable costs except factory
| Job 7-01 | Job 7-02 | ||||
| Direct materials | 10,630 | Direct materials | 4,970 | ||
| Direct labor | 4,100 | Direct labor | 2,100 | ||
| Factory overhead | 2,255 | Factory overhead | 1,155 | ||
| Total | 16,985 | Total | 8,225 | ||
| Job 7-03 | Job 7-04 | ||||
| Direct materials | 13,680 | Direct materials | 3,060 | ||
| Direct labor | 4,500 | Direct labor | 600 | ||
| Factory overhead | ? | Factory overhead | ? |
Determine each of the following for July:
a. Direct and indirect materials used.
| Direct materials used and transferred to Work in Process | $fill in the blank 1 |
| Indirect materials used and transferred to Factory Overhead | $fill in the blank 2 |
b. Direct and indirect labor used.
| Direct labor used and transferred to Work in Process | $fill in the blank 3 |
| Indirect labor used and transferred to Factory Overhead | $fill in the blank 4 |
c. Factory overhead applied (a single overhead rate is used based on direct labor cost).
$fill in the blank 5
d. Cost of completed Jobs 7-01 and 7-02.
$fill in the blank 6
e. Assume that in addition to indirect materials and indirect labor, factory overhead of $1,800 was incurred during July. Determine the overapplied or underapplied overhead for July.
produce a solution
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
