Question
Use below information for Questions 5 to 7 : Company X uses a job cost system and applies overhead to production on the basis of
Use below information for Questions 5 to 7:
Company X uses a job cost system and applies overhead to production on the basis of direct labor cost. On January 1, 2018, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: DM of TL27,000, DL of TL11,600, and MOH of TL15,003. As of January 1, Job 49 had been completed at a cost of TL85,007 and was part of finished goods inventory. There was a TL13,500 balance in the raw materials inventory account.
During the month of January, Company X began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for TL122,600 and TL158,070, respectively. Following additional events occurred during the month:
- Purchased additional raw materials of TL95,007 on account.
- Incurred factory labor costs of TL64,600 exclusive of payroll taxes. Payroll taxes amounted to TL16,030.
- Incurred indirect materials of TL17,000, and indirect labor of TL20,003
- Depreciation on factory equipment totalled to TL12,000
- Other factory expenses on account were TL17,000
- During the month, Company X assigned following costs to respective jobs as follows:
Assigned Costs
| DM |
| DL |
Job 50 | 10,000 |
| 5,700 |
Job 51 | 39,000 |
| 25,070 |
Job 52 | 30,300 |
| 20,000 |
Company X estimates total manufacturing overhead costs of TL887,000, direct labor costs of TL700,030 and direct labor hours 20,060 for the year.
- Compute the balance of WIP as at January 31.
- Compute the balance of FG as at January 31.
- Calculate the balance of MOH account as at January 31. Use if the MOH is underapplied. (e.g. if the account gives an overapplied balance of 100, enter 100. If the account gives an underapplied balance of 100, enter 100.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started