Determining Manufacturing Costs

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, $3,080 of indirect materials and $10,900 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	31,880			Direct materials	14,900
Direct labor	12,200			Direct labor	6,300
Factory overhead	6,710			Factory overhead	3,465
Total	50,790			Total	24,665
Job 7-03				Job 7-04
Direct materials	43,200			Direct materials	9,180
Direct labor	13,500			Direct labor	1,800
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 $5,300 was incurred during July. Determine the overapplied or underapplied overhead for July. $fill in the blank 7

underappliedoverapplied