Question 1 Fogel Flight Company uses a job costing system and computes a predetermined factory overhead...

Transcribed Image Text:

Question 1 Fogel Flight Company uses a job costing system and computes a predetermined factory overhead rate based on direct labour-hours. At the beginning of the period, the company's estimates were: manufacturing overhead cost, 35,000; and direct labour-hours 10,000. The actual data relate to December 2020 operations. (1) Materials and supplies were requisitioned from the stores clerk as follows: Job 101, material X, 7,000. Job 202, material X, 3,000; material Y, 6,000. Job 303, material X, 7,000; material Y, 3,200. For general factory use: materials A, B, and C, 2,300. (2) Time tickets for the month were chargeable as follows: Job 101 11,000 3,000 hours Job 202 14,000 3,600 hours Job 303 8,000 1,900 hours Indirect labor 3,700 (3) Other information: Various factory overhead charges of 19,400 were incurred on account. Depreciation of factory equipment for the month was 5,400. Selling and administrative costs were 2,100. Job orders completed during the month: Job 101 and Job 202. Required: a) If Job 202 was sold on account for 51,600, how much profit would be recognized for the job? (4 Marks) b) What was the end of the month Work-in-Process Inventory balance for Job 303? (3 Marks) c) How much was under- or overapplied manufacturing overhead for the month? (3 Marks) Question 1 Fogel Flight Company uses a job costing system and computes a predetermined factory overhead rate based on direct labour-hours. At the beginning of the period, the company's estimates were: manufacturing overhead cost, 35,000; and direct labour-hours 10,000. The actual data relate to December 2020 operations. (1) Materials and supplies were requisitioned from the stores clerk as follows: Job 101, material X, 7,000. Job 202, material X, 3,000; material Y, 6,000. Job 303, material X, 7,000; material Y, 3,200. For general factory use: materials A, B, and C, 2,300. (2) Time tickets for the month were chargeable as follows: Job 101 11,000 3,000 hours Job 202 14,000 3,600 hours Job 303 8,000 1,900 hours Indirect labor 3,700 (3) Other information: Various factory overhead charges of 19,400 were incurred on account. Depreciation of factory equipment for the month was 5,400. Selling and administrative costs were 2,100. Job orders completed during the month: Job 101 and Job 202. Required: a) If Job 202 was sold on account for 51,600, how much profit would be recognized for the job? (4 Marks) b) What was the end of the month Work-in-Process Inventory balance for Job 303? (3 Marks) c) How much was under- or overapplied manufacturing overhead for the month? (3 Marks)