Question

Use below information for Questions 8 to 10:

Company X is a manufacturing firm producing specialized equipments. June 1, 2018 B/S shows below balances:

Item	Beg
RM	4,270
MOH Applied	32,740
MOH Incurred	36,650

June 1, 2018 subsidiary ledgers (job cost sheets) show 3 jobs are being performed with following balances^[1]:

Assigned Costs	DM	DL		MOH
R	660	320		403
S	800	543		675
L	930	580		765

During June, RM purchases on account were TL4,970, and all wages (inclusive of payroll taxes) were paid in cash. Additional MOH of depreciation on factory equipment of TL900 was incurred together with miscellaneous production costs of TL470 on account. A summary of MRSs and LTTs shows below information (Hint: General use is also for production.):

Assigned Costs	DM		DL
R	870		850
K	2,000		870
S	560		360
L	1,300		1,260
R	360		390
General Use	1,500		1,203

MOH was charged to jobs at a rate of 1.35 per TL of DL costs. Jobs R, S and L were completed in June and sold for a total of TL19,700 in cash.

5. Compute the balance of WIP as at June 30.
6. Compute the balance of FG as at June 30.
7. Calculate the balance of MOH account as at June 30. Use − if the MOH is underapplied. (e.g. if the account gives an overapplied balance of 100, enter 100. If the account gives an underapplied balance of 100, enter −100.)

[1] Note that the total of job cost sheets is the Beg WIP

Answer 1

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Company X
Predetermined overhead rate	Amount TL	Note
Predetermined overhead rate	1.35	A
Job Cost sheet
Particulars	Job R	Job K	Job S	Job L	Job R	Total	Note
Opening work in process
Direct Materials	660.00		800.00	930.00		2,390.00
Direct Labor	320.00		543.00	580.00		1,443.00
Overhead	403.00		675.00	765.00		1,843.00
Cost incurred during the month
Direct Materials	870.00	2,000.00	560.00	1,300.00	360.00	5,090.00
Direct Labor	850.00	870.00	360.00	1,260.00	390.00	3,730.00	B
Overhead applied	1,147.50	1,174.50	486.00	1,701.00	526.50	5,035.50	C=A*B
Total Cost	4,250.50	4,044.50	3424.00	6,536.00	1,276.50	19,531.50	D
Answer 1	Job K
Work in Process Inventory	$   4,044.50
Work in Process Inventory is $ 4,044.50.
Answer 2	Job R
Finished goods Inventory	$   1,276.50
Finished goods Inventory is $ 1,276.50.
Answer 3
Balance of MOH account	Amount TL
Opening Balance- Incurred	36,650.00
Opening Balance- Applied	32,740.00
Opening Balance- Under Applied	3,910.00	E
Depreciation on factory equipment	900.00
Miscellaneous production costs	470.00
General Use- DM	1,500.00
General Use- DL	1,203.00
Actual overhead	4,073.00	F
Less: Overhead applied	5035.5	See C
Balance of MOH account (Credit balance)	2,947.50	G=E+F-C