In: Accounting
Hanover Products manufactures screws and bolts made to customer specifications. During August, they incurred the following manufacturing costs: ? Direct materials $28,019 ? Direct labor $15,276.75 ? Applied factory overhead $9,854.50 The following data pertain to these costs: Summary of Direct Materials Requisitions
Dept # |
Job # |
Req # |
Quantity |
Cost per unit |
1 |
8961 |
M66r |
2,675 |
$2.23 |
2 |
8962 |
M67r |
125 |
18.78 |
1 |
8963 |
M68r |
780 |
8.29 |
1 |
8961 |
M69r |
289 |
5.72 |
2 |
8963 |
M70R |
95 |
22.07 |
1 |
8964 |
M71r |
2,945 |
3.24 |
Summary of Direct Labor Time Tickets
Dept # |
Job # |
Ticket # |
Hours |
Rate per hr |
1 |
8961 |
1056-1166 |
770 |
$7.25 |
1 |
8962 |
1167-1173 |
50 |
7.25 |
2 |
8962 |
2121-2130 |
92 |
8.75 |
1 |
8963 |
1174-1189 |
178 |
7.25 |
2 |
8963 |
2131-2134 |
44 |
8.75 |
1 |
8964 |
1190-1230 |
945 |
7.25 |
The overhead application rate is $4 per direct labor hour for Dept 1 and 175% of direct labor cost for Dept 2. The company had no beginning work in process for August, Job 8958, which cost $14,190.18 to manufacture, was completed in July and was sold on account in August for $19,000. The job cost sheet for this job is shown on below. Of the jobs begun in August, Job 8961 was completed and sold on account for $24,000,
ACG2071 - 2185
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Job 8962 and 8964 was completed but not sold and Job 8963 was still in process.
Hanover Products |
Job # |
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Job Cost Sheet |
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Direct Materials |
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Dept # |
Req. # |
Quantity |
Cost/Unit |
Total |
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Formula |
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Formula |
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Formula |
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Formula |
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Direct Labor |
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Dept # |
Ticket # |
Quantity |
Rate |
Total |
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Formula |
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Formula |
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Formula |
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Applied Factory Overhead |
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Dept # |
Basis |
Hours |
Cost |
Rate |
Total |
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1 |
DL Hrs |
Formula |
XXX |
$4 |
Formula |
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2 |
DL cost |
xxxx |
Formula |
175% |
Formula |
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Formula |
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Total Factory Cost |
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Total |
Formula |