Question
UVW Manufacturing uses a job order costing system. The following information pertains to Job No. 202 for the month of October 2024: Direct materials used:
UVW Manufacturing uses a job order costing system. The following information pertains to Job No. 202 for the month of October 2024:
Direct materials used: $12,000
Direct labor: 500 hours at $20 per hour
Applied manufacturing overhead: 120% of direct labor cost
Additional data:
Actual manufacturing overhead for October: $15,000
Other jobs in October incurred $6,000 in direct materials, $7,000 in direct labor, and $9,000 in applied overhead.
Required: a. Compute the total cost of Job No. 202. b. Prepare the journal entries to record the direct materials, direct labor, and applied overhead for Job No. 202. c. Post the journal entries to the ledger accounts. d. Determine the under-applied or over-applied manufacturing overhead for October 2024 and prepare the necessary journal entry to close the overhead account.
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