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The following information applies to the ODonnell Company for March production. There are only two jobs (X and Y) in production in March. Purchased direct
The following information applies to the ODonnell Company for March production. There are only two jobs (X and Y) in production in March.
- Purchased direct materials and indirect materials with the following summary of receiving reports:
Material A$25,500 Material B 16,750 Indirect materials 7,750 Total$50,000
- Issued direct materials and indirect materials with this summary of requisitions:
Job X Job Y TotalMaterial A$9,900 $19,800 $29,700 Material B 4,900 9,900 14,800 Subtotal$14,800 $29,700 $44,500 Indirect materials 43,750 Total $88,250
- Factory labor incurred is summarized by these time tickets:
Job X$25,800 Job Y 16,900 Indirect labor 32,750 Total$75,450
- Factory utilities, factory depreciation, and factory insurance incurred is summarized as follows:
Utilities$4,900 Depreciation 21,800 Insurance 4,400 Total$31,100
- Factory overhead costs were applied to jobs at the predetermined rate of $55.50 per machine hour. Job X incurred 1,100 machine hours; Job Y used 800 machine hours.
- Job X was completed; Job Y was still in process at the end of March.
The company closed the overapplied or underapplied overhead to the Cost of Goods Sold account at the end of March.
Required:
1. Calculate the total manufacturing cost for Job X and Job Y for March.
2. Calculate the amount of overapplied or underapplied overhead and state whether the Cost of Goods Sold account will be increased or decreased by the adjustment.
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