Question

View Policies Current Attemptin Progress Don Lieberman and Associates a CPA firm uses border costing to capture the costs of its audit jobs. There were no audit jobs in process at the beginning of November. Listed below are data concerning the three dit jobs conducted during November Waters Inc. Renolds Inc. Bayfield Inc. Direct materials $540 $450 5290 Auditorlabor costs $5.700 57.700 $3.975 No hours Overhead costs are clied to jobs on the base of ditor hours and the wedetermined overhead rate is 56 peruditor hour. The Waters job is the only incomplete job at the end of November. Actual overhead for the month was 512 200 Cost Waters 5 Renolds s Ca thening blance of the court count for Low ER

Answer 1

The answer has been presented in the supporting sheet. All the parts has been presented in the supporting sheet. All the parts has been solved with detailed explanation and calculation. For detailed answer refer to the supporting sheet.

5 Particulars - Direct Material 5 Auditors Labor Cost 5 Operating overheads 7 Total cost Answer Calculation of Cost of each Job Water inc. Renolds Inc. Bayfield Inc. 640 450 290 5700 77001 3975 4368 4984 2744 10708 13134 70091 Thus the cost of each job 0 Water inc. 1 Renolds Inc. 2 Bayfield Inc. 10708 13134 7009 4 Part b) 5 Amount in progress is of water inc. job only 6 so, the amount of work in process = $ 10708 8 Part ) 9 Under or (overapplied) overheads 0 = actual overheads - applied overheads 1 = 12200 - (4368+4984+2744) 2 = $ 104 4 Thus the correct answer is 5 Balance of operating overheads = $ 104 Underapplied / Debit