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, $1,540 of indirect materials and $5,500 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	15,940			Direct materials	7,450
Direct labor	6,100			Direct labor	3,200
Factory overhead	3,355			Factory overhead	1,760
Total	25,395			Total	12,410
Job 7-03				Job 7-04
Direct materials	20,910			Direct materials	4,590
Direct labor	6,800			Direct labor	900
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	$
Indirect materials used and transferred to Factory Overhead	$

b. Direct and indirect labor used.

Direct labor used and transferred to Work in Process	$
Indirect labor used and transferred to Factory Overhead	$

c. Factory overhead applied (a single overhead rate is used based on direct labor cost). $

d. Cost of completed Jobs 7-01 and 7-02. $

e. Assume that in addition to indirect materials and indirect labor, factory overhead of $2,700 was incurred during July. Determine the overapplied or underapplied overhead for July. $