Question

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. July 1 July 31 $ 37,600 43,200 0 $ 2 66,000 ? ? 0 17,700 33,020 14,550 Inventories Direct Materials Work-in-Process Finished Goods Cost of Goods Sold Direct materials purchased in July Materials issued to production: X13 X14 X15 Factory labor hours used ($30/hour): X13 X14 X15 Indirect labor Other factory overhead costs incurred: Rent Utilities Repairs and maintenance Depreciation Other 4,050 3,350 2,150 7,450 $137,000 644,250 194,000 136,600 61,500 As of July 31, Job X13 was sold and Jobs X14 and X15 were still in process. Total factory overhead applied in July was $1,403,850.

Answer 1

5. Statement of cost of goods manufactured

	Total$	Total$	X13	X14	X15
Opening stock of rawmaterials		37600
Purchases		66000
Closing stock of Direct Materials		38330
Direct Materials consumed		65270	17700	33020	14550
Labour Cost		9550	4050	3350	2150
Prime Cost		74820	21750	36370	16700
Factory overhead
Indirect labour	7450
Rent	137000
Utilities	644250
Repairs and maintenance	194000
Depreciation	136600
Other	61500	1180800	500758	414207	265835
Factory Cost		1255620	522508	450577	282535
Add Opening stock of work in progress		43200
Less Closig stock of work in progress		733112
Cost of goods manufactured		565708

Closing stock of materials =

Opening stock of rawmaterials		37600
Purchases		66000
Less Materials issued to production		(65270)
Closing stock of Direct Materials		38330

6. Over or under applied overheads

			X13	X14	X15
Factory overhead applied		1403850	595350	492450	316050
Actual overhead incurred		1180800	500758	414207	265835
Overapplied overhead		223050	94592	78243	50215

7. Cost per unit of Job X13

= Total cost / number of units

= 565708/100 = $5657.08

8. Statement of cost of goods sold

Cost of goods sold
Opening stock of finished goods	0
Cost of profuction	565708
Less Closing stock of finished goods	0	565708