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Heritage Company uses a job-order costing system to assign costs to jobs. It had no work in process or finished goods inventories on hand at the beginning of May. The table below provides data concerning the only three jobs worked on in May. Direct labor hours Direct materials Direct labor Job X 202 $4,890 $ 2,420 Jobs X and Y were completed in May; however, only 150 of the 200 units included in Job X were sold in May, whereas all 100 of Job Y's units were sold in May. Job Z was not completed by the end of the month. Overhead costs are applied to jobs based on direct labor-hours, and the predetermined overhead rate is $45 per direct labor-hour. The company's total applied overhead always equals its total actual overhead. Required 1 Job Y 82 $ 1,860 $1,050 Required: 1. Compute the amount of overhead cost that would have been applied to each job during May. 2. Compute the work in process inventory that would be reported in the company's May 31 balance sheet. 3. Compute the finished goods inventory that would be reported in the company's May 31 balance sheet. 4. Compute the cost of goods sold that would be reported in the company's income statement for May. Complete this question by entering your answers in the tabs below. Required 2 Cost of goods sold Job Z 122 $ 3,620 $ 1,520 Required 3 Required 4 Compute the cost of goods sold that would be reported in the company's income statement for May. Job Z Job X Job Y $ Total 0

Heritage Company uses a job-order costing system to assign costs to jobs. It had no work in process or finished goods inventories on hand at the beginning of May. The table below provides data concerning the only three jobs worked on in May. Direct labor hours Direct materials Direct labor Job X 202 $4,890 $ 2,420 Jobs X and Y were completed in May; however, only 150 of the 200 units included in Job X were sold in May, whereas all 100 of Job Y's units were sold in May. Job Z was not completed by the end of the month. Overhead costs are applied to jobs based on direct labor-hours, and the predetermined overhead rate is $45 per direct labor-hour. The company's total applied overhead always equals its total actual overhead. Required 1 Job Y 82 $ 1,860 $1,050 Required: 1. Compute the amount of overhead cost that would have been applied to each job during May. 2. Compute the work in process inventory that would be reported in the company's May 31 balance sheet. 3. Compute the finished goods inventory that would be reported in the company's May 31 balance sheet. 4. Compute the cost of goods sold that would be reported in the company's income statement for May. Complete this question by entering your answers in the tabs below. Required 2 Cost of goods sold Job Z 122 $ 3,620 $ 1,520 Required 3 Required 4 Compute the cost of goods sold that would be reported in the company's income statement for May. Job Z Job X Job Y $ Total 0

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 9P: Channel Products Inc. uses the job order cost system of accounting. The following is a list of the...
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Heritage Company uses a job-order costing system to assign costs to jobs. It had no work in process or finished goods inventories on hand at the beginning of May. The table below provides data concerning the only three jobs worked on in May. Direct labor hours Direct materials Direct labor Job X 202 $ 4,890 $ 2,420 Jobs X and Y were completed in May; however, only 150 of the 200 units included in Job X were sold in May, whereas all 100 of Job Y's units were sold in May. Job was not completed by the end of the month. Required 1 Job Y 82 $ 1,860 $ 1,050 Overhead costs are applied to jobs based on direct labor-hours, and the predetermined overhead rate is $45 per direct labor-hour. The company's total applied overhead always equals its total actual overhead. Required: 1. Compute the amount of overhead cost that would have been applied to each job during May. 2. Compute the work in process inventory that would be reported in the company's May 31 balance sheet. 3. Compute the finished goods inventory that would be reported in the company's May 31 balance sheet. 4. Compute the cost of goods sold that would be reported in the company's income statement for May. Required 2 Cost of goods sold Complete this question by entering your answers in the tabs below. Job Z 122 Required 3 $ 3,620 $ 1,520 Required 4 Compute the cost of goods sold that would be reported in the company's income statement for May. Job X Job Y Job Z $ Total 0
Transcribed Image Text:Heritage Company uses a job-order costing system to assign costs to jobs. It had no work in process or finished goods inventories on hand at the beginning of May. The table below provides data concerning the only three jobs worked on in May. Direct labor hours Direct materials Direct labor Job X 202 $ 4,890 $ 2,420 Jobs X and Y were completed in May; however, only 150 of the 200 units included in Job X were sold in May, whereas all 100 of Job Y's units were sold in May. Job was not completed by the end of the month. Required 1 Job Y 82 $ 1,860 $ 1,050 Overhead costs are applied to jobs based on direct labor-hours, and the predetermined overhead rate is $45 per direct labor-hour. The company's total applied overhead always equals its total actual overhead. Required: 1. Compute the amount of overhead cost that would have been applied to each job during May. 2. Compute the work in process inventory that would be reported in the company's May 31 balance sheet. 3. Compute the finished goods inventory that would be reported in the company's May 31 balance sheet. 4. Compute the cost of goods sold that would be reported in the company's income statement for May. Required 2 Cost of goods sold Complete this question by entering your answers in the tabs below. Job Z 122 Required 3 $ 3,620 $ 1,520 Required 4 Compute the cost of goods sold that would be reported in the company's income statement for May. Job X Job Y Job Z $ Total 0
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