Factory uses job costing to cost its products. In its first quarter the company

Question

Factory uses job costing to cost its products. In its first quarter the company incurred the following material and labor cost. Company applies overhead to products using normal costing and uses machine hours as the cost driver
Material data:
Direct material purchases $100,000
Direct material used in production (cost) $85,000
Labor data:
Direct labor costs $60,000
Manufacturing overhead data:
Overhead application rate per machine hour $9.00
Machine hours used 10,000
Inventory data:
Transferred to finished goods $210,000
Cost of goods sold during quarter $190,000

Calculate direct materials ending inventory
Calculate the work in process ending inventory
Calculate the finished goods ending inventory

At the end of the quarter, actual manufacturing overhead costs totaled $80,000
Calculate the over or underapplied overhead for the period

Explanation / Answer

direct materials ending inventory=100,000-85000=$15,000 work in process ending inventory =$90000+$60000=$150,000 finished goods ending inventory =$210,000-$190,000=$20,000 the over overhead was=$90,000-$80,000=$10,000

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