Work-in-Process Inventory for Carston Incorporated at the beginning of the year was a single job, Job T114: Job #Direct MaterialsDirect LaborOverheadTotalT114$37,000 $19,000 $31,500 $87,500 The company’s budgeted costs for the year are as follows: Budgeted overhead Variable Indirect materials$ 73,500Indirect labor61,500Employee benefits30,750Fixed Supervision15,750Depreciation17,750Total$ 199,250Budgeted direct labor dollars$ 99,625Rate per direct labor dollar200% The company’s actual costs incurred during the year are as follows: Job #Incurred by JobsTotalMaterialsLaborOtherT114$ 3,100$ 11,100$ -$ 14,200T11925,10020,200-45,300T1339,10036,750-45,850T1362,10017,650-19,750 $ 39,400$ 85,700 $ 125,100 OverheadIncurred by JobsTotalMaterialsLaborOtherIndirect materials and supplies$ 64,400--$ 64,400Indirect labor-54,400-54,400Employee benefits--36,85036,850Depreciation--17,75017,750Supervision-13,650-13,650Total$ 64,400$ 68,050$ 54,600$ 187,050 Required:1. What was the actual factory overhead for Carston Incorporated for the year?2. What was overapplied or underapplied overhead for the year?3. Job T114 was the only job completed and sold in the year. What amount was included in the Cost of Goods Sold account for this job?4. What was the amount of Work-in-Process Inventory at the end of the year?

Total Actual Overhead will be $187,050

Answered: Required: 1. What was the actual…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Work-in-Process Inventory for Carston Incorporated at the beginning of the year was a single job, Job T114:

Job #	Direct Materials	Direct Labor	Overhead	Total
T114	$	37,000		$	19,000		$	31,500		$	87,500

The company’s budgeted costs for the year are as follows:

Budgeted overhead
Variable
Indirect materials	$ 73,500
Indirect labor	61,500
Employee benefits	30,750
Fixed
Supervision	15,750
Depreciation	17,750
Total	$ 199,250
Budgeted direct labor dollars	$ 99,625
Rate per direct labor dollar	200%

The company’s actual costs incurred during the year are as follows:

Job #	Incurred by Jobs	Total
Materials	Labor	Other
T114	$ 3,100	$ 11,100	$ -	$ 14,200
T119	25,100	20,200	-	45,300
T133	9,100	36,750	-	45,850
T136	2,100	17,650	-	19,750
	$ 39,400	$ 85,700		$ 125,100

Overhead	Incurred by Jobs	Total
Materials	Labor	Other
Indirect materials and supplies	$ 64,400	-	-	$ 64,400
Indirect labor	-	54,400	-	54,400
Employee benefits	-	-	36,850	36,850
Depreciation	-	-	17,750	17,750
Supervision	-	13,650	-	13,650
Total	$ 64,400	$ 68,050	$ 54,600	$ 187,050

Required:

1. What was the actual factory overhead for Carston Incorporated for the year?

2. What was overapplied or underapplied overhead for the year?

3. Job T114 was the only job completed and sold in the year. What amount was included in the Cost of Goods Sold account for this job?

4. What was the amount of Work-in-Process Inventory at the end of the year?

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