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In: Accounting

1. On January 7, 20Y5, the materials department of Deacon Corporation received the following items: Receiving...

1. On January 7, 20Y5, the materials department of Deacon Corporation received the following items: Receiving Report No. 40 for $1,400, materials requisition for Job 70 for $400, and materials requisition for Job 71 for $230.

As of January 1, 20Y5, Deacon Corporation expected to incur $10,000 of factory overhead. This would be applied per hour of machine usage, which is expected to be 4,000 hours for the month. The company incurs the following expenses during the month: $1,000 for indirect materials, $4,100 for indirect labor, $5,000 for factory utilities, and $1,750 for factory depreciation. Job 70 required 1,900 machine hours and Job 71 required 2,950 machine hours.

a. Calculate the predetermined factory overhead rate.

b. What is the amount of costs incurred for Job 70?

Throughout the year, Deacon Corporation incurred an additional $90,400 of expenses allocated to Factory Overhead. The company applied an additional $89,200 of Factory Overhead to Work in Process.

c. At the end of January and December, was Factory Overhead over- or underapplied? And by how much?

Deacon Corporation completed Job 70 on February 15 and Job 71 on March 18. Job 70 required the following additional costs: $7,500 of materials, $5,000 of direct labor, and $4,000 of factory overhead. Job 71 required the following additional costs: $6,100 of materials, $3,300 of factory overhead, and $4,900 of direct labor.

d. If Work in Process had a beginning balance of $5,000 as of the beginning of January, what is the balance after the completion of the jobs? An additional $2,300 was transferred to finished goods inventory for Job 72.

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ekkarill92 answered 11 months ago
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