State whether the overhead has been under- or over applied for the month and indicate the probable causes for the debit balance.

Question

Occasion Shop, Inc., keeps accounting and cost records on a personal computer. During the month of January, data were lost as a result of errors made by a new operator. Fortunately, some data were retrieved and are set forth as follows:a. The debit balance in the payroll account was P130,000. This balance included P20,000 in indirect labor that was charged to the factory overhead.b. The debit balance in the factory overhead account totaled P165,000 while the total credit totaled P166,000.c. Work in process account showed a January 1 balance of P 91,000. Materials requisitioned and charged to work in process during the period amounted to P 98,000. The balance in work in process on January 31, was P82,000.d. The finished goods balance at January 1 was P50,000.e. Cost of goods sold had a debit balance of P 389,000. This amount did not include under-applied factory overhead. The balance of Cost of Sales after closing the overhead variance (immaterial) is?

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Chapter 4, Problem 28Q

To determine

State whether the overhead has been under- or over applied for the month and indicate the probable causes for the debit balance.

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Occasion Shop, Inc., keeps accounting and cost records on a personal computer. During the month of January, data were lost as a result of errors made by a new operator. Fortunately, some data were retrieved and are set forth as follows:a. The debit balance in the payroll account was P130,000. This balance included P20,000 in indirect labor that was charged to the factory overhead.b. The debit balance in the factory overhead account totaled P165,000 while the total credit totaled P166,000.c. Work in process account showed a January 1 balance of P 91,000. Materials requisitioned and charged to work in process during the period amounted to P 98,000. The balance in work in process on January 31, was P82,000.d. The finished goods balance at January 1 was P50,000.e. Cost of goods sold had a debit balance of P 389,000. This amount did not include under-applied factory overhead. The balance of Cost of Sales after closing the overhead variance (immaterial) is?

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SM Corp. keeps accounting and cost records on a personal computer. During the month of January, date were lost as a result of errors made by a new operator. Fortunately, some data were retrived and are set forth as follows: a) The debit balance in the Payroll acount was P130,000. This balance included P20,000 in indirect labor that was charged to the Factory Overhead account. b) The debit balance in the Factory Overhead account totaled P166,000. This balance included the indirect labor hour amount in (a). c) Factory overhead is applied to the products at 150 percent of direct labor cost. d) The Work in Process account showed a January 1 balance of P91,000. Materials requisitioned and charged to Work in Process during the period amounted to P98,000. The balance in Work in Process on January 31, was P82,000. e) The Finished Goods balance at January 1 was P82,000. f) Cost of Goods Sold had a debit balance of P389,000. This amount did not included underapplied or overapplied…