Question
Foley Company uses a job-order costing system. The following data relate to the month of October, the first month of the companys fiscal year: a.
Foley Company uses a job-order costing system. The following data relate to the month of October, the first month of the companys fiscal year: |
a. | Raw materials purchased on account, $211,000. |
b. | Raw materials issued to production, $189,000 (80% direct and 20% indirect). |
c. | Direct labor cost incurred, $49,000; and indirect labor cost incurred, $22,000. |
d. | Depreciation recorded on factory equipment, $104,000. |
e. | Other manufacturing overhead costs incurred during October, $130,000 (credit accounts payable). |
f. | The company applies manufacturing overhead cost to production on the basis of $4 per machine-hour. A total of 76,100 machine-hours were recorded for October. |
g. | Production orders costing $514,000 according to their job cost sheets were completed during October and transferred to Finished Goods. |
h. | Production orders that had cost $449,000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account at 50% above cost.
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