Question

Work-in-Process Inventory for Carston Inc. at the beginning of the year was a single job, Job T114: 2 Direct Direct Job Overhead Total Materials $38,000 Labor T114 $19,500 $32,000 $89,500 7 points The company's budgeted costs for the year are as follows: 01:22:50 Budgeted overhead Variable Indirect materials Indirect labor 74,500 62,500 31,250 Employee benefits Fixed 16,250 18,250 Supervision Depreciation Total $202,750 Budgeted direct labor dollars $101,375 Rate per direct labor dollar 200 The company's actual costs incurred during the year are as follows: Incurred by Jobs Job Materials 3,300 25,300 Labor Other Total $ 14,600 45,900 46,550 20,250 T114 $11,300 - 20,600 250 ,7ב T119 9,300 2,300 T133 T136 17,950 $40,200 $87,100 $127,300 Incurred by Job Overhead Materials Labor Other Total Indirect materials and supplies Indirect 1abor 65,200 65,200 55,200 55,200 Employee benefits 37,550 18,250 37,550 18,250 13,950 Depreciation Supervision 13,950 $65,200 $69,150 $55,800 $190,150 Total Required: 1 What was the actual factory overhead for Carston Inc. 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? 1Total actual overhead 2 Cost of goods sold for job 3. T114 Work-in-process 4 |inventory

Answer 1

Answer with working notes is given below

1. Actual Overhead incurred $190,150 Over applied or under applied overheads Direct Labor cost $87,100 Overheads applied at 200% Actual Overheads Under applied overheads $174,200 $190,150 $15,950 3. Cost of Goods Sold for Job 114 $126,700 Job 114 Direct Material Direct Labor Prime Cost $3,300 $11,300 $14,600 Overhead applied* Factory cost of production Opening Work in progress Cost of Goods manufactured $22,600 $37,200 $89,500 $126,700 Overhead applied at 200% of Direct Labor cost 4. Work in process at end of the year Job No.119 Job No.133 Job No.136 Total Direct Material $25,300 $9,300 $2,300 $36,900 Direct Labor $20,600 $37,250 $17,950 $75,800 Prime Cost $45,900 $46,550 $20,250 $112,700 Overhead applied Closing Work in progress $41,200 $87,100 $74,500 $121,050 $35,900 $151,600 $56,150 $264,300 Overhead applied at 200% of Direct Labor cost Closing Work in progress $264,300

1. Actual Overhead incurred $190,150 Over applied or under applied overheads Direct Labor cost $87,100 Overheads applied at 200% Actual Overheads Under applied overheads $174,200 $190,150 $15,950 3. Cost of Goods Sold for Job 114 $126,700 Job 114 Direct Material Direct Labor Prime Cost $3,300 $11,300 $14,600 Overhead applied* Factory cost of production Opening Work in progress Cost of Goods manufactured $22,600 $37,200 $89,500 $126,700 Overhead applied at 200% of Direct Labor cost 4. Work in process at end of the year Job No.119 Job No.133 Job No.136 Total Direct Material $25,300 $9,300 $2,300 $36,900 Direct Labor $20,600 $37,250 $17,950 $75,800 Prime Cost $45,900 $46,550 $20,250 $112,700 Overhead applied Closing Work in progress $41,200 $87,100 $74,500 $121,050 $35,900 $151,600 $56,150 $264,300 Overhead applied at 200% of Direct Labor cost Closing Work in progress $264,300

1. Actual Overhead incurred $190,150 Over applied or under applied overheads Direct Labor cost $87,100 Overheads applied at 200% Actual Overheads Under applied overheads $174,200 $190,150 $15,950 3. Cost of Goods Sold for Job 114 $126,700 Job 114 Direct Material Direct Labor Prime Cost $3,300 $11,300 $14,600 Overhead applied* Factory cost of production Opening Work in progress Cost of Goods manufactured $22,600 $37,200 $89,500 $126,700 Overhead applied at 200% of Direct Labor cost 4. Work in process at end of the year Job No.119 Job No.133 Job No.136 Total Direct Material $25,300 $9,300 $2,300 $36,900 Direct Labor $20,600 $37,250 $17,950 $75,800 Prime Cost $45,900 $46,550 $20,250 $112,700 Overhead applied Closing Work in progress $41,200 $87,100 $74,500 $121,050 $35,900 $151,600 $56,150 $264,300 Overhead applied at 200% of Direct Labor cost Closing Work in progress $264,300