FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 | 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 |
| 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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