Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 49

Application of Overhead; Schedule of Cost of Goods Manufactured
Haughton Company uses a job costing system for its production costs and a predetermined factory overhead rate based on direct labor costs to apply factory overhead to all jobs. During the month of July, the firm processed three jobs: X13, X14, and X15, of which X13 was started in June.


Required
1. Compute the predetermined factory overhead rate.
2. Compute the amount of materials inventory at the end of July.
3. Compute the actual factory overhead cost incurred during the month of July.
4. Compute the ending balance of the work-in-process inventory account for July.
5. Prepare the statement cost of goods manufactured for July.
6. Compute the amount of over- or underapplied overhead.
7. What is the cost per unit of Job X13 if it has a total of 100 units
8. Prepare the statement of cost of goods sold for July.