29. Comprehensive Job Costing LO, Kabinets cabinetry for Kurtis produces custom

Question

29. Comprehensive Job Costing LO, Kabinets cabinetry for Kurtis produces custom homes, which is sold nationwide. The , 3, 45 Company overhead costs to cabinetry projects at the rate a $.75 per direct The company labor houraccumu. lates overhead costs a separate in manufacturing overhead account and uses normal costing overhead. The following data provide details of the companys activity and balances during the last half of the year: to assign Direct materials inventory Work in process inventory July 1 December 31 $ 60,250 $61,750 Finished-goods inventory 44,000 43,500 Monthly production data: 24,150 23,000 Direct materials purchased Direct labor costs ($15/hr.) Required A. Calculate the cost of direct materials use $155,000 270,000 the period. B. Calculate the th

Explanation / Answer

A Direct Material Inventory Dr CR Particulars Amt Particular Amt Beginning Balance 60250 Accounts payble 155000 Direct material used 153500 Ending Bal 61750 Direct material used 153500 Work In process Dr CR Particulars Amt Particular Amt Beginning Balance 44000 DM used 153500 Cost of Goods manuafactured calculatedas below) 563500 Direct Labour 270000 Finished Goods 563500 Manufacturing Overhead (18000*7.75) 139500 Beginning Balance 44000 Ending Bal 43500 Add: Manufacturing Cost Incurred 563000 Less: Ending Balance 43500 Cost of Goods manuafactured 563500 563500 Direct Labour Hours 270000/15 18000 Finished Goods Dr CR Particulars Amt Particular Amt Beginning Balance 24150 Cost of good sold 564650 Cost of Goods manuafactured calculatedas below) 563500 Ending Balance 23000 Cost of good sold 564650 To calculate all we have to use the formula Beginning Balance+Cost Incyrred-Closing Balance Cost of Good sold before Adj D 564650 Adjustment Actual Overhead A Please enter the amt from the question as few lines are not shown Manu. Overhead applied b 139500 in the question, so I could not see this amount, the answer will come Underapplied C= (A-B) Adjusted Cost of good sold D+C

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