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The following information applies to the O'Donnell Company for March production. There are only two jobs (X and Y) in production in March. a.
The following information applies to the O'Donnell Company for March production. There are only two jobs (X and Y) in production in March. a. Purchased direct materials and indirect materials with the following summary of receiving reports: Material A Material B Indirect materials Total $ 26,000 17,000 8,000 $ 51,000 b. Issued direct materials and indirect materials with this summary of requisitions: Material A Material B Subtotal Indirect materials Total Job X $ 10,000 5,000 $ 15,000 $ 30,000 Job Y $ 20,000 10,000 c. Factory labor incurred is summarized by these time tickets: Job X Job Y Indirect labor Total $ 26,000 17,000 33,000 $ 76,000 Total $ 30,000 15,000 $ 45,000 44,000 $ 89,000 d. Factory utilities, factory depreciation, and factory insurance incurred is summarized as follows: Utilities Depreciation Insurance Total $ 5,000 22,000 4,500 $ 31,500 e. Factory overhead costs were applied to jobs at the predetermined rate of $56.00 per machine hour. Job X incurred 1,100 machine hours; Job Y used 800 machine hours. f. 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. 1. Total manufacturing costs - Job X 2. Total manufacturing costs - Job Y Cost of goods sold
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