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ttempt in Progress The following data were taken from the records of Blossom Enterprises, a Canadian manufacturer that uses a normal job-order costing system: Work
ttempt in Progress The following data were taken from the records of Blossom Enterprises, a Canadian manufacturer that uses a normal job-order costing system: Work in Process, December 1 Job Number 70 75 80 Direct materials $2,210 $2,950 $1,850 Direct labour 1,480 2,950 740 Applied overhead 740 1,660 550 Total $4,430 $7,560 $3.140 During December, the company worked on jobs numbered 70 through 90 and incurred the following costs: Job Number 70 75 80 85 90 Total Direct materials $740 $1,110 $1,480 $1,660 $1,850 $6.840 Direct labour $920 $1,850 $3,690 $2,770 $7,380 $16,610 Direct labour hours 60 120 250 180 490 1,100 Additional information: 1. 2. Total overhead costs are applied to jobs on the basis of direct labour hours worked. At the beginning of the year, the comp estimated that total overhead costs for the year would be $184,560, and the total labour hours worked would be 15,380. The balance in the Departmental Overhead Control account on December 1 was $196.810. Actual direct labour hours for previous 11 months (January through November) were 13,840. 3. 4. There were no jobs in finished goods on December 1. Expenses for December were as follows (not yet recorded in the books of account): Direct materials purchased $9,230 Salaries Production clerk 1,850 Supervisor 2,710 Depreciation (plant and equipment) 3,060 Factory supplies 1,850 Sales staff salaries 11,320 Utilities (factory) 2.210 Administrative expenses 11,690 $43.920 5. The company writes off all under- or over-applied overhead to Cost of Goods Sold at the end of the year. 6. Jobs 70, 80, 85, and 90 were completed during December, Only Job 90 remained in finished goods on December 31. 7 The company charges its customers 250% of total manufacturing cost. 8. Cost of goods sold to December 1 was $43,920. given, calculate the following amounts: 1. The predetermined overhead rate used to apply overhead to products $ per labour hour 2. The cost of ending work in process inventory 3. The cost of goods manufactured in December 4. The unadjusted gross margin for December Calculate the under- or over-applied overhead for the year. Overhead $ What effect would this amount have on net income? Net income will be by $ eTextbook and Media List of Accounts
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