Question

#Q2 .Pendarvis Company uses a job-order costing system and has the following information for the first week of June:

1.Direct labor and direct materials used:  

Job No. Direct Material Direct Labor Hours

498 $1,500 116

506   960 16

507 415 18

508 345 42

509   652 24

511 308 10

512 835 30

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Total $5,015 256

   2.The direct labor wage rate is $4 per hour.  

3.The overhead rate is $5 per direct labor hour.  

4.Actual overhead costs for the week, $1,480.  

5.Jobs completed: Nos. 498, 506, and 509.  

6.The factory had no work in process at the beginning of the week.  

Required:

A.PrepareA a summary that will show the total cost assigned to each job.  

B.Compute the amount of overhead over- or underapplied during the week.  

C.Calculate the cost of the work in process at the end of the week.

Answer 1

A Total Cost assigned Direct material Direct labor Manufacturing overhead applied Total manufacturing cost 498 $1,500.00 $116.00 $145.00 $1,761.00 506 $960.00 $16.00 $20.00 $996.00 507 $415.00 $18.00 $22.50 $455.50 Job No. 508 $345.00 $42.00 $52.50 $439.50 509 $652.00 $24.00 $30.00 $706.00 511 $308.00 $10.00 $12.50 $330.50 512 Total $835.00 $5,015.00 $30.00 $256.00 $37.50 $320.00 $902.50 $5,591.00 Working notes: 498 Direct labor Direct labor hours ( DL cost/$4) Manufacturing overhead applied (DL hour * $5 per hour) $116 29.00 $145.00 506 $16 4.00 $20.00 507 $18 4.50 $22.50 Job No. 508 $421 10.50 $52.50 509 $24 6.00 $30.00 511 $100 2.50 $12.50 512 Total $300 7.50 $37.50 $320.00 B Actual manufacturing incurred Manufacturing overhead applied Under-applied manufacturing overheads $1,480 $320 $1,160 c Cost of Work in process at end of the week $2,128 Working notes: 511 498 $1,761.00 Yes 506 $996.00 Yes Job No. 508 $439.501 507 $455.50 509 $706.001 Yes 512 Total $902.50 $5,591.00 $330.50 Total manufacturing cost Job completed Work in process Cost of Work in process Yes Yes Yes $439.50 $455.50 Yes $330.50 $902.50 $2,128.00