Chapter 19, Problem 2APSA

To determine

Job costing means calculation of material cost, labor and overhead expenses for a specific job. In this method cost can be traced to individual jobs and if any cost is incurred excess in a jon then it can be charged from that customer.

Over-applied overheads means when applied overheads are more than the actual manufacturing overheads incurred then it is known over-applied overheads.

Under-applied overheads means when applied overheads are less than the actual overheads incurred then it is known under-applied overheads.

Requirement -1

To determine

We have to prepare journal entries for the various costs assigned in the given question from (a) to (e)

To determine

Requirement-2

To determine:

We have to determine revised value of fixed overhead and also to determine whether it is under applied or over applies and prepare a journal entry for the same adjustment.

To determine

Requirement-3

We have to prepare a revised trial balance after all above adjustments.

To determine

Requirement-4

We have to prepare income statement and balance sheet after all adjustments.

To determine

Requirement -5

To determine

We have to determine the impact of error of direct material wrongly charged on Income statement and Balance sheet.