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Required: Note, 1) what was the overapplied or underapplied overhead for the year.  2) Calculate the costs on the job cost sheets for finished ending inventory.

Required: Note, 1) what was the overapplied or underapplied overhead for the year.  2) Calculate the costs on the job cost sheets for finished ending inventory.

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 16P: Rockford Company has four departmental accounts: Building Maintenance, General Factory Overhead,...
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Ahmad's Corporation had the following transactions during its first month of operations:

  1. Purchased raw materials on account, $85,000.
  2. Raw Materials of $30,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,000 was classified as indirect materials.
  3. Factory labor costs incurred were $100,000 of which time tickets indicated that $84,000 was direct labor and $16,000 was indirect labor.
  4. Other overhead costs incurred on account were $112,000.
  5. Manufacturing overhead was applied at the rate of 150% of direct labor cost.
  6. Goods costing $115,000 are still incomplete at the end of the month; the other goods were completed and transferred to finished goods.
  7. Finished goods costing $100,000 to manufacture were sold on account for $130,000
Required: Note,
1) what was the overapplied or underapplied overhead for the year.
 2) Calculate the costs on the job cost sheets for finished ending inventory. 

 

 

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