Reference no: EM133121801

Question - Powell Company uses a job costing system. During the month of May, Powell spent most of its time on job A50, which was started late in April. Following is cost information for job A50, other May costs, and relevant annual estimates.

Materials issued:

80% for Direct Use on job A50 and 20% for Indirect Use through May $ 6,000

Labor:

Direct Labor for job A50 (300 DLH @ $20 per DLH) 6,000

Indirect Labor for May 310

Other May Costs:

Depreciation (30% Factory and 70% Administrative) 1,000

Other (70% Factory and 30% Administrative) 700

Overhead Cost Driver: Direct Labor Hours (DLH)

Estimated Annual Overhead 21,000

Estimated Annual DLH 3,000

Markup-as a percent of cost 40%

Required -

(1) What is the overhead to be applied for May to job A50 upon completion on May 15?

(2) What are total manufacturing costs for May for job A50?

(3) Prepare the journal entry when job A50 is completed on May 15, assuming that the May 1 work-in-process inventory for job A50 was $600.

(4) What is the profit on job A50 when it is sold on May 15?

(5) Calculate the under- or over-applied overhead for May.