Question

Job Order Costing With Under- and Overapplied Factory Overhead M. Evans & Sons manufactures parts for radios. For each job order, it maintains ledger sheets on which it records direct labor, direct materials, and factory overhead applied. The factory overhead control account contains postings of actual overhead costs. At the end of the month, the under or overapplied factory overhead is charged to the cost of goods sold account Factory overhead is applied on the basis of direct labor hours. For Job Nos. 101, 102, 103, and 104, direct labor hours are 12,000, 9,900,11,100, and 18,100, respectively. The overhead application rate is $1.20/direct labor hour (a) Purchased raw materials on account, $50,070. (6) Issued direct materials: Jobs No. 101: $10,300 Job No. 102: 7,660 Job No. 103 9,330 Job No. 104 15,180 (c) Issued indirect materials to production, $7.950. (d) Incurred direct labor costs: Job No. 101: $22,250 Job No. 102 19,420 Job No. 103 20,670 Sob No. 104 30,160 (e) Charged indirect labor to production, $14,900 (1) Pandectricity bil, taxes, and repair fees for the factory and charged to production, $7,920 (o) Depreciation expense on factory equipment, 530,000 (1) Aphed factory overhead to Job hos 101-104 in the predetermined factory overhead route above) Cuch My Work Previous 9 40 520 PM SAMSUNG logach

Answer 1

Answerr to the question:

S.No	Date	Account Title	Debit	Credit
1	a.	Materials	50,070		1
2		Account Payable		50,070	2
3					3
4	b.	Work in Process (Job No.101)	10,300		4
5		Work in Process (Job No.102)	7,660		5
6		Work in Process (Job No.103)	9,330		6
7		Work in Process (Job No.104)	15,180		7
8		Materials		42,470	8
9					9
10	c.	Factory Overheads	7,950		10
11		Materials		7,950	11
12					12
13	d.	Work in Process (Job No.101)	22,250		13
14		Work in Process (Job No.102)	19,420		14
15		Work in Process (Job No.103)	20,870		15
16		Work in Process (Job No.104)	30,160		16
17		Wages Payable		92,700	17
18					18
19	e.	Factory Overheads	14,900		19
20		Wages Payable		14,900	20

S.No	Date	Account Title	Debit	Credit
1	f.	Factory Overheads	7,920		1
2		Cash		7,920	2
3					3
4	g.	Factory Overheads	30,000		4
5		Depreciation/Accumulated Depreciation		30,000	5
6					6
7	h.	Work in Process (Job No.101)	14,400		7
8		Work in Process (Job No.102)	11,880		8
9		Work in Process (Job No.103)	13,320		9
10		Work in Process (Job No.104)	21,720		10
11		Factory Overheads		61,320	11
12					12
13	i.	Finished Good (Product N)	46,950		13
14		Work in Process (Job No.101)		46,950	14
15					15
16		Finished Good (Product O)	38,960		16
17		Work in Process (Job No.102)		38,960	17
18					18
19		Finished Good (Product P)	43,520		19
20		Work in Process (Job No.103)		43,520	20
21					21
22	j.	Accounts Receivable	49,940		22
23		Sale Product N		49,940	23
24					24
25		Cost of Goods Sold	46,950		25
26		Finished Goods-Product N		46,950	26
27					27
28		Accounts Receivable	45,450		28
29		Sale Product O		45,450	29
30					30
31		Cost of Goods Sold	38,960		31
32		Finished Goods-Product O		38,960	32
33					33
34	k.	Factory Overheads	8,470		34
35		Cost of Goods Sold		8,470	35

Actual Factory Overheads = 7,950+14,900+7,920+30,000= 52,850

Applied Factory Overheads = 61,320

Therefore Over applied Factory Overheads=61320-52850=8470

2. T Accounts:

                                            Work in Process

b	Job No.101	10,300	i	Job No.101	46,950
b	Job No.102	7,660	i	Job No.102	38,960
b	Job No.103	9,330	i	Job No.103	43,520
b	Job No.104	15,180
d	Job No.101	22,250
d	Job No.102	19,420
d	Job No.103	20,870
d	Job No.104	30,160
h	Job No.101	14,400
h	Job No.102	11,880
h	Job No.103	13,320
h	Job No.104	21,720

Balance                            67,060

                                           Finished Goods

i	Product N	46,950	j	Product N	46,950
i	Product O	38,960	j	Product O	38,960
i	Product P	43,520

Balance                               43,520

3. Balnce in Job cost Leger (Job No.104) = $ 67,060

Balance on Work in Process control account =$ 67,060