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Work-in-Process Inventory for Carston Incorporated at the beginning of the year was a single job, Job T114: Job # Direct Materials Direct Labor Overhead Total T114 $ 35,500 $ 18,250 $30,750 $84,500 The company's budgeted costs for the year are as follows: Budgeted overhead Variable $ 72,000 60,000 30,000 Indirect materials Indirect labor Employee benefits Fixed Supervision Depreciation 15,000 17,000 $ 194,000 $ 97,000 Total Budgeted direct labor dollars Rate per direct labor dollar 200% The company's actual costs incurred during the year are as follows: Incurred by Jobs Job # Materials Labor Other Total $ 2,800 24,800 8,800 1,800 $ 10,800 19,600 36,000 17,200 $ 83,600 $ 13,600 44,400 44,800 19,000 T114 2$ T119 T133 T136 $ 38,200 $ 121,800 Incurred by Jobs Overhead Materials Labor Other Total Indirect materials and supplies Indirect labor $ 63,200 $ 63,200 53,200 53,200 Employee benefits Depreciation Supervision 35,800 35,800 17,000 13,200 $ 182,400 17,000 13,200 Total $ 63,200 $ 66,400 $ 52,800 Required: 1. What was the actual factory overhead for Carston Incorporated for the year? 2. What was overapplied or underapplied overhead for the year? 3. Job T114 was the only job completed and sold in the year. What amount was included in the Cost of Goods Sold account for this job?

Work-in-Process Inventory for Carston Incorporated at the beginning of the year was a single job, Job T114: Job # Direct Materials Direct Labor Overhead Total T114 $ 35,500 $ 18,250 $30,750 $84,500 The company's budgeted costs for the year are as follows: Budgeted overhead Variable $ 72,000 60,000 30,000 Indirect materials Indirect labor Employee benefits Fixed Supervision Depreciation 15,000 17,000 $ 194,000 $ 97,000 Total Budgeted direct labor dollars Rate per direct labor dollar 200% The company's actual costs incurred during the year are as follows: Incurred by Jobs Job # Materials Labor Other Total $ 2,800 24,800 8,800 1,800 $ 10,800 19,600 36,000 17,200 $ 83,600 $ 13,600 44,400 44,800 19,000 T114 2$ T119 T133 T136 $ 38,200 $ 121,800 Incurred by Jobs Overhead Materials Labor Other Total Indirect materials and supplies Indirect labor $ 63,200 $ 63,200 53,200 53,200 Employee benefits Depreciation Supervision 35,800 35,800 17,000 13,200 $ 182,400 17,000 13,200 Total $ 63,200 $ 66,400 $ 52,800 Required: 1. What was the actual factory overhead for Carston Incorporated for the year? 2. What was overapplied or underapplied overhead for the year? 3. Job T114 was the only job completed and sold in the year. What amount was included in the Cost of Goods Sold account for this job?

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter4: Job-order Costing And Overhead Application
Section: Chapter Questions
Problem 62P: (Appendix 4A) Overhead Application, Journal Entries, Job Cost At the beginning of the year, Smith...
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Work-in-Process Inventory for Carston Incorporated at the beginning of the year was a single job, Job T114: Job # Direct Materials Direct Labor Overhead Total T114 $ 35,500 $ 18,250 $ 30,750 $ 84,500 The company's budgeted costs for the year are as follows: Budgeted overhead Variable $ 72,000 60,000 30,000 Indirect materials Indirect labor Employee benefits Fixed Supervision Depreciation 15,000 17,000 $ 194,000 $ 97,000 Total Budgeted direct labor dollars Rate per direct labor dollar 200% The company's actual costs incurred during the year are as follows: Incurred by Jobs Job # Materials Labor Other Total $ 2,800 24,800 8,800 1,800 $ 38,200 $ 10,800 19,600 36,000 $ 13,600 44,400 44,800 19,000 $ 121,800 T114 T119 T133 17,200 $ 83,600 T136 Incurred by Jobs Overhead Materials Labor Other Total Indirect materials and supplies $ 63,200 63,200 53,200 Indirect labor 53,200 Employee benefits Depreciation Supervision 35,800 17,000 35,800 13,200 $ 66,400 17,000 13,200 $ 182,400 Total $ 63,200 $ 52,800 Required: 1. What was the actual factory overhead for Carston Incorporated for the year? 2. What was overapplied or underapplied overhead for the year? 3. Job T114 was the only job completed and sold in the year. What amount was included in the Cost of Goods Sold account for this job? 4. What was the amount of Work-in-Process Inventory at the end of the year?
Transcribed Image Text:Work-in-Process Inventory for Carston Incorporated at the beginning of the year was a single job, Job T114: Job # Direct Materials Direct Labor Overhead Total T114 $ 35,500 $ 18,250 $ 30,750 $ 84,500 The company's budgeted costs for the year are as follows: Budgeted overhead Variable $ 72,000 60,000 30,000 Indirect materials Indirect labor Employee benefits Fixed Supervision Depreciation 15,000 17,000 $ 194,000 $ 97,000 Total Budgeted direct labor dollars Rate per direct labor dollar 200% The company's actual costs incurred during the year are as follows: Incurred by Jobs Job # Materials Labor Other Total $ 2,800 24,800 8,800 1,800 $ 38,200 $ 10,800 19,600 36,000 $ 13,600 44,400 44,800 19,000 $ 121,800 T114 T119 T133 17,200 $ 83,600 T136 Incurred by Jobs Overhead Materials Labor Other Total Indirect materials and supplies $ 63,200 63,200 53,200 Indirect labor 53,200 Employee benefits Depreciation Supervision 35,800 17,000 35,800 13,200 $ 66,400 17,000 13,200 $ 182,400 Total $ 63,200 $ 52,800 Required: 1. What was the actual factory overhead for Carston Incorporated for the year? 2. What was overapplied or underapplied overhead for the year? 3. Job T114 was the only job completed and sold in the year. What amount was included in the Cost of Goods Sold account for this job? 4. What was the amount of Work-in-Process Inventory at the end of the year?
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