Haughton Company uses a job costing system for its production costs and a predetermined factory overhead rate based on direct labor costs to apply factory overhead to all jobs. During the month of July, the firm processed three jobs: X13, X14, and X15, of which X13 was started in June. July 1 July 31 Inventories Direct Materials $ 37,900 ? Work-in-Process 43,800 ? Finished Goods 0 0 Cost of Goods Sold $ ? Direct materials purchased in July 69,000 Materials issued to production: X13 18,060 X14 35,420 X15 14,700 Factory labor hours used ($30/hour): X13 4,200 X14 3,500 X15 2,300 Indirect labor 7,600 Other factory overhead costs incurred: Rent $ 138,500 Utilities 789,600 Repairs and maintenance 195,500 Depreciation 138,100 Other 63,000 As of July 31, Job X13 was sold and Jobs X14 and X15 were still in process. Total factory overhead applied in July was $1,560,000. Required: 5. Prepare the Statement of Cost of Goods Manufactured for July. 6. Compute the amount of overapplied or underapplied overhead. 7. What is the cost per unit of Job X13 if it has a total of 100 units?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 14P: Abbey Products Company is studying the results of applying factory overhead to production. The...

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Question

Haughton Company uses a job costing system for its production costs and a predetermined factory overhead rate based on direct labor costs to apply factory overhead to all jobs. During the month of July, the firm processed three jobs: X13, X14, and X15, of which X13 was started in June.

	July 1		July 31
Inventories
Direct Materials	$	37,900		?
Work-in-Process		43,800		?
Finished Goods		0		0
Cost of Goods Sold	$	?
Direct materials purchased in July		69,000
Materials issued to production:
X13		18,060
X14		35,420
X15		14,700
Factory labor hours used ($30/hour):
X13		4,200
X14		3,500
X15		2,300
Indirect labor		7,600
Other factory overhead costs incurred:
Rent	$	138,500
Utilities		789,600
Repairs and maintenance		195,500
Depreciation		138,100
Other		63,000