Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Haughton Company uses a job costing system for its production costs and a predetermined factory overhead rate based on direct labor costs to apply

Haughton Company uses a Job costing system for its production costs and a predetermined factory overhead rate


Compute the predetermined factory overhead rate. Compute the amount of the Direct Materials account at the

Haughton Company uses a job costing system for its production costs and a predetermined factory overhead rate based on direct labor costs to apply factory overhead to all jobs. During the month of July, the firm processed three jobs: X13, X14, and X15, of which X13 was started in June. Inventories Direct Materials Work-in-Process Finished Goods Cost of Goods Sold Direct materials purchased in July Materials issued to production: X13 X14: X15 Factory labor hours used ($30/hour) X13 X24 X15 Indirect labor Other factory overhead costs incurred: Rent $36.700 41,400 D $7 57,000 16,620 25,820 14,100 3,600 2,900 1,700 7,000 $ 132,500 256,800 July 31 Utilities Repairs and maintenance Depreciation Other As of July 31, Job X13 was sold and Jobs X14 and X15 were still in process. Total factory overhead applied in July was $984,000. 189,500 132,100 57,000 7 Compute the predetermined factory overhead rate. Compute the amount of the Direct Materials account at the end of July. Compute the actual factory overhead cost incurred during the month of July. Compute the ending balance of the Work-in-Process Inventory account for July. - Prepare the Statement of Cost of Goods Manufactured for July. Compute the amount of overapplied or underapplied overhead. What is the cost per unit of Job X13 if it has a total of 100 units? Prepare the Statement of Cost of Goods Sold for July.

Step by Step Solution

3.42 Rating (155 Votes )

There are 3 Steps involved in it

Step: 1

The predetermined factory overhead rate is calculated by dividing the total plannedbudgeted factory overhead costs by the plannedbudgeted direct labor ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Cost Accounting

Authors: William Lanen, Shannon Anderson, Michael Maher

3rd Edition

9780078025525, 9780077517359, 77517350, 978-0077398194

More Books

Students also viewed these Accounting questions

Question

What are the possible sources of error in this project?

Answered: 1 week ago

Question

What is the total amount removed from Joshua's estate in 2014?

Answered: 1 week ago

Question

describe examples of energy-efficient technology

Answered: 1 week ago

Question

What is the Easterlin Paradox?

Answered: 1 week ago

Question

How does EVA differ from residual income?

Answered: 1 week ago