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Cool Beat Sound (CBS) Ltd, which uses a job costing system, had two jobs in process at the start of the year: job number 64
Cool Beat Sound (CBS) Ltd, which uses a job costing system, had two jobs in process at the start of the year: job number 64 ($84,000) and job number 65 ($53,000). The following information is available: The company applies manufacturing overhead on the basis of machine hours. Budgeted overhead and machine activity for the year were anticipated to be $740,000 and 17,000 hours, respectively. The company worked on four jobs during the first quarter (i.e. from 1 January to 31 March). Direct materials used, direct labour incurred, and machine hours consumed were as shown in the following table. Manufacturing overhead during the first quarter included deprecation ($34000), indirect labour ($60000), indirect material used ($50000) and other factory costs ($139500). CBS Ltd completed job number 64 and job number 65 job number 65 was sold on credit, producing a profit of $34700 for the firm. The following journal entry is to record the application of manufacturing overhead to production Work in process inventory $ xxx Manufacturing overhead $ xxx Enter the amount of xxx above
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