Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please show how to get the answers. The company applies overhead to jobs on the basis of direct labor cost. For the fiscal year starting
Please show how to get the answers.
The company applies overhead to jobs on the basis of direct labor cost. For the fiscal year starting January 1st, it was estimated that direct labor cost would be $12,000 and overhead costs would total $11,400. During the year, the following transactions were completed: 1. Raw materials purchased on account, $10,590. 2. Raw materials requisitioned for use in production, $9,820. Materials costing $8,640 were charged to directly to jobs; the remaining requisitions were for indirect materials usage. 3. Direct and indirect labor costs were $12,200 and $3,900, respectively. 4. Other overhead costs incurred, including factory rent, factory utilities and depreciation of factory equipment, totaled $6,400 for the year. 5. Overhead was applied to production. 6. Goods that had cost $31,860 according to their job cost sheets were completed during the year. 7. Sales revenue totaled $64,370 for the year and the cost of goods sold to customers totaled $31,490. 8. Disposed of the balance in Factory Overhead by closing it to Cost of Goods Sold. Fill in the following: (do not use dollar signs) Cost of indirect materials requisitioned into production: The amount of overhead applied to production: Total manufacturing costs incurred in production: The amount of under- or over-applied overhead: Was overhead under- or over-applied? (Write "under" or "over") The ending balance in Raw Materials: The ending balance in Work in Process: The ending balance in Finished Goods: Gross profit for the year (after disposition of overhead)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started