Question

Hooper Manufacturing Company employs a job order cost accounting system and keeps perpetual inventory records. The following transactions occurred in the first month of operations:

1. Direct materials requisitioned during the month:

Job 56 $12,000

Job 57 6,000

Job 58 14,000

$32,000

2. Direct labor incurred and charged to jobs during the month was:

Job 56 $20,000

Job 57 16,000

Job 58 10,000

$46,000

3. Manufacturing overhead was applied to jobs worked on using a predetermined overhead rate based on 80% of direct labor costs.

4. Actual manufacturing overhead costs incurred during the month amounted to $39,000.

5. Job 56 consisting of 2,000 units and Job 58 consisting of 400 units were completed during the month.

Instructions

A.. Answer the following:

1. How much manufacturing overhead was applied to Job 58 during the month?

2. Compute the unit cost of Jobs 56 and 58.

3. What is the balance in Work in Process Inventory at the end of the month?

4. Determine if manufacturing overhead was under- or overapplied during the month. How much?