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Batchelor Company manufactures custom accounting ledgers using ajob-order costing system. Manufacturing Overhead is applied to eachjob as a predetermined rate of 150% of Direct Labor cost. Any underapplied overhead is prorated between work in process, FinishedGoods, and Cost of Goods Sold based on the amount of manufacturingoverhead in their ending balances at the end of each month.

Additional formation:

1. Job 100 was completed but unsold as of 1/31/2016 with actualincurred costs as follows: Direct materials = $3,900 and DirectLabor =$ 2,400

2. Job 101 was the only job in process on 1/31/2016 with actualincurred costs as follows: Direct Materials = $3,300 and DirectLabor = $2,700

3. Job 102, 103, 104, and 105 were started on February 2016

4. Direct Material used in production during February totaled$16,000

5. The total Cost of Goods Manufactured for February was$68,750

6. Actual manufacturing Overhead was $36,000 for February

7. The only job still in process on 2/28/2016 was job 105 whichhas actual incurred costs of $2,800 for Direct Materials and $1,800for Direct Labor

8. The only completed job left unsold on 2/28/2016 was job 104which has actual incurred costs of $3,500 for direct materials and$4,500 for direct labor

A. Calculate the Cost of Goods for Febuary after closing theunder/over applied overhead.

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Jamar Ferry
Jamar FerryLv2
28 Sep 2019

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