Reference no: EM132814461

Question - The following information applies to the O'Donnell Company for March-production. There are only two jobs (X and Y) in production in March.

Purchased direct materials and indirect materials with the following summary of receiving reports:

Material A $26,000

Material B 17,000

Indirect materials 8,000

Total $51,000

-Issued direct materials and indirect materials with this summary of requisitions:

Job X Job Y Total

Material A $10,000 $20,000 $30,000

Material B 5,000 10,000 15,000

Subtotal $15,000 $30,000 $45,000

Indirect materials 44,000

Total $89,000

-Factory labor incurred is summarized by these time tickets:

Job X $26,000

Job Y 17,000

Indirect labor 33,000

Total $76,000

-Factory utilities, factory depreciation, and factory insurance incurred is summarized as follows:

Utilities $5,000

Depreciation 22,000

Insurance 4,500

Total $31,500

-Factory overhead costs were applied to jobs at the predetermined rate of $56.00 per machine hour. Job X incurred 1,100 machine hours; Job Y used 800 machine hours.

-Job X was completed; Job Y was still in process at the end of March.The company closed the overapplied or underapplied overhead to the Cost of Goods Sold account at the end of March.

Required -

1. Calculate the total manufacturing cost for Job X and Job Y for March.

2. Calculate the amount of overapplied or underapplied overhead and state whether the Cost of Goods Sold account will be increased or decreased by the adjustment.