Haughton Company uses a job costing system for its production costs and a predetermined factory overhead rate based on direct labor costs to apply factory overhead to all jobs. During the month of July, the firm processed three jobs: X13, X14, and X15, of which X13 was started in June.     July 1   July 31 Inventories               Direct Materials $ 36,500       ?   Work-in-Process   41,000       ?   Finished Goods   0       0   Cost of Goods Sold $ ?           Direct materials purchased in July   55,000           Materials issued to production:               X13   16,380           X14   24,220           X15   14,000           Factory labor hours used ($30/hour):               X13   3,500           X14   2,800           X15   1,600           Indirect labor   6,900           Other factory overhead costs incurred:               Rent $ 131,500           Utilities   180,600           Repairs and maintenance   188,500           Depreciation   131,100           Other   56,000             As of July 31, Job X13 was sold and Jobs X14 and X15 were still in process.   Total factory overhead applied in July was $900,600. Required: 1. Compute the predetermined factory overhead rate. 2. Compute the amount of the Direct Materials account at the end of July. 3. Compute the actual factory overhead cost incurred during the month of July. 4. Compute the ending balance of the Work-in-Process Inventory account for July. 5. Prepare the Statement of Cost of Goods Manufactured for July. 6. Compute the amount of overapplied or underapplied overhead. 7. What is the cost per unit of Job X13 if it has a total of 100 units? 8. Prepare the Statement of Cost of Goods Sold for July.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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10.

Haughton Company uses a job costing system for its production costs and a predetermined factory overhead rate based on direct labor costs to apply factory overhead to all jobs. During the month of July, the firm processed three jobs: X13, X14, and X15, of which X13 was started in June.

 

  July 1   July 31
Inventories              
Direct Materials $ 36,500       ?  
Work-in-Process   41,000       ?  
Finished Goods   0       0  
Cost of Goods Sold $ ?          
Direct materials purchased in July   55,000          
Materials issued to production:              
X13   16,380          
X14   24,220          
X15   14,000          
Factory labor hours used ($30/hour):              
X13   3,500          
X14   2,800          
X15   1,600          
Indirect labor   6,900          
Other factory overhead costs incurred:              
Rent $ 131,500          
Utilities   180,600          
Repairs and maintenance   188,500          
Depreciation   131,100          
Other   56,000          
 


As of July 31, Job X13 was sold and Jobs X14 and X15 were still in process.

 

Total factory overhead applied in July was $900,600.

Required:
1. Compute the predetermined factory overhead rate.

2. Compute the amount of the Direct Materials account at the end of July.

3. Compute the actual factory overhead cost incurred during the month of July.

4. Compute the ending balance of the Work-in-Process Inventory account for July.

5. Prepare the Statement of Cost of Goods Manufactured for July.

6. Compute the amount of overapplied or underapplied overhead.

7. What is the cost per unit of Job X13 if it has a total of 100 units?

8. Prepare the Statement of Cost of Goods Sold for July.

What is the cost per unit of Job X13 if it has a total of 100 units? (Round your answer to 2 decimal places.)
Cost per unit
Transcribed Image Text:What is the cost per unit of Job X13 if it has a total of 100 units? (Round your answer to 2 decimal places.) Cost per unit
Total manufacturing costs incurred during year
326,425
Total manufacturing costs to account for
Cost of goods manufactured
Actual overhead
Transcribed Image Text:Total manufacturing costs incurred during year 326,425 Total manufacturing costs to account for Cost of goods manufactured Actual overhead
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