The following selected data were taken from the records of the Bixby Box Company

Question

The following selected data were taken from the records of the Bixby Box Company The company uses a job costing system to account for its manufacturing costs. Bixby's fiscal year runs from January 1 to December 31; manufacturing overhead is closed out only at the end of the fiscal year. The following information relates to August operations. (1) Jobs in process on August 1. Job No. W12 and X13, Materials 800 and 1000, Labor 1200 and 1620, Overhead ? and ?. (2) Jobs completed during August: W12, X13, Y14. (3) Material requisitions and labor time tickets indicated the following: Job No. W12, X13, Y14, and Z15. Material Requisition 610, 370, 2780, 4050, and 390. Time Tickets 760, 1420, 3100, 1080, and 540. (4.) Jobs sold during August: W12, X13. (5.) Bixby applies overhead to production based upon labor costs. (6.) Selected account balances on August 1 were: Overhead 1400 overapplied, Materials 5175, Work in process 9555, Finished goods 0. (7.) Various overhead incurred (excluding indirect materials and indirect labor) during August, $13,500. (8.) Materials (direct and indirect) purchased during August, $10,905. Required: (a) What is the balance in the Material Inventory account on August 31? (b) Is the manufacturing overhead account over-or underapplied on August 31? By how much? (c) Compute the cost of goods manufactured for August. (d) Compute the cost of goods sold for August. (e) What is the balance of the Work-in-Process Inventory account on August 31?

Explanation / Answer

(a) $5,175 + 10,905 - (610 + 370 + 2,780 + 4,050 + 390) = ending balance = $7,880

(b) overhead in Work-in-Process Inventory, August 1: $9,555 - (800 + 1,000) - (1,200 + 1,620) = $4,935;

overhead rate = $4,935/$2,820 = 175% of Direct Labor Costs MOH debits: IM $390 + IL 540 + incurred 13,500 = $14,430

MOH credits:

Beg Bal 1,400 + applied 11,130 = $12,530 Ending MOH: $14,430 - 12,530 = $1,900

debit balance: underapplied

(d) W12 + X13: $6,800 + $9,730 = $16,530

(e) Job Z15: Material ($4,050) + Labor ($1,080) + Overhead ($1,890) = $7,020

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.