Phillies Company manufactures custom made awnings. Phillies uses a normal job-costing system, based on the direct labour cost. The direct labour rate is $25 per hour. The budgeted labour hours for the quarter are 2,000 hours. The actual overhead rate for this past quarter is $32.50 per labour hour. The cost information for work-in-process and fi nished goods is shown as follows:

The ending balance in the Work-in-Process account consists of three incomplete jobs. An analysis shows that 600 labour hours and overhead costs have been charged to these jobs.

REQUIRED

A. Calculate the ending balance of work-in-process and the amount of cost of goods sold.
B. Calculate the actual labour hours worked for the quarter. What is the budgeted manufacturing overhead rate per labour hour? What are the total budgeted overhead costs?
C. Is the overhead over- or underapplied? Prepare an adjusting entry for the difference, assuming the amount is immaterial.
D. Calculate the amount of direct materials, direct labour, and manufacturing overhead charged to the three incomplete jobs.

Transcribed Image Text:

Finished Goods 21,500 106,000 59,500 Work-in-Process 106,000 Beginning Balance Direct materials Direct labour Manufacturing Overhead Beginning Balance ? 31,500 52,000 65,000 Ending Balance