Work-in-Process Inventory for Carston Inc. at the beginning of the year was a single job, Job T114:

The company’s budgeted costs for the year are as follows:

Budgeted overhead
Variable
Indirect materials ............................... $ 68,000
Indirect labor ......................................... 56,000
Employee benefits ............................... 28,000
Fixed
Supervision ............................................ 13,000
Depreciation ......................................... 15,000
Total $180,000
Budgeted direct labor dollars .......... $ 90,000
Rate per direct labor dollar .............  200.00%

The company’s actual costs incurred during the year are as follows:

Required

1. What was the actual factory overhead for Carston Inc. 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?

Transcribed Image Text:

Job # Direct Materials Direct Labor Overhead Total T114 $31,500 $16,250 $28,750 $76,500