Question

Exercise 2-8 Enos Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter's production. I Materials purchased on account $197,900, and factory wages incurred Hs93,100. 2 Materials requisitioned and factory labor used by job: Job Number A20 A21 A22 1 A23 General factory use Materials Factory Labor $37,740 | $19,200 44,320 1 2 3,600 38,000 15,600 41,7701 2 7,100 5,270 7 600 167,100 $93,100 BIManufacturing overhead costs incurred on account $53,000. el Depreciation on factory equipment $17,150. SlDepreciation on the company's office building was $14,800. & Manufacturing overhead rate is 83% of direct labor cost. Elbobs completed during the quarter: A20, A21, and A23. a. Prepare a schedule showing the individual cost elements and total cost for each job in item 7. Direct Direct Manufacturing Foto Materials Labor Overhead Total for the completed jobs b. Identify actual overhead incurred for the quarter. Show work. c. Is overhead undersupplied or overapplied? Identify the amount under or overapplied. Show work d. Identify period cost for the quarter. Show work.

Answer 1

		(i)	(ii)	(iii) = (ii)*83%	(iv)
a)	Job	Direct Materials	Direct Labor	Manufacturing Overhead	Total
	A20	$37,740	$19,200	$15,936	$72,876
	A21	$44,320	$23,600	$19,588	$87,508
	A23	$41,770	$27,100	$22,493	$91,363
		Total for the completed Job			$251,747
b)	Actual overhead incurred incurred during the quarter
				Incurred on account		$53,000
			Add: Depreciation on equipment			$17,150
						$70,150
c)	Actual overhead incurred incurred during the quarter					$70,150
	Overhead applied					$77,273
	Over-applied					$7,123
		(i)	(ii)	(iii) = (ii)*83%
	Job	Direct Materials	Direct Labor	Manufacturing Overhead	Total
	A20	$37,740	$19,200	$15,936	$72,876
	A21	$44,320	$23,600	$19,588	$87,508
	A22	38000	15600	$12,948	$66,548
	A23	$41,770	$27,100	$22,493	$91,363
	General factory	$5,270	$7,600	$6,308	$19,178
				$77,273
d)	Period costs
	Depreciation on office building			$14,800