Concept explainers
Hooper Manufacturing Company employs a job-order cost accounting system and keeps
perpetual inventory records. The following transactions occurred in the first month of operations:
1. Direct materials requisitioned during the month:
Job 56 $12,000
Job 57 6,000
Job 58 14,000
$32,000
2. Direct labour incurred and charged to jobs during the month was:
Job 56 $20,000
Job 57 16,000
Job 58 10,000
$46,000
3. Manufacturing
based on 80% of direct labour costs.
4. Actual
5. Job 56 consisting of 2,000 units and Job 58 consisting of 400 units were completed during
the month.
Instructions
a) Prepare
b) Answer the following:
i. How much manufacturing overhead was applied to Job 58 during the month?
ii. Calculate the unit
iii. What is the balance in Work in Process Inventory at the end of the month?
iv. Determine if manufacturing overhead was under- or over-applied during the month. By
how much?
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