Determine amount of over-or under applied factory overhead

Assignment Help Cost Accounting

Reference no: EM132786023

Question - The books of Torrent Company show the following account balances as of March 1:

The work in process account is supported by the following job order cost sheets:

During March, the following transactions occurred:

(a) Purchase of materials, $41,000.

(b) Purchase of special materials was $5,800 for new Job 207, which calls for 4,000 life jackets.

(d) Materials issued:

Job 204 $9,480

Job 205 11,320

Job 206 10,490

Job 207 16,640*

*Excluding $5,800 of special materials, which are also issued at this time.

(e) Other factory overhead incurred or accrued (for brevity, credit the entire amount to Various Credits):

(f) Factory overhead is applied at the rate of $2.30 per direct labor hour. An applied factory overhead account is used and is then closed to the overhead control account.

(g) Job 204 was shipped and billed at a contract price of $117,500.

Required -

(1) Construct ledger accounts, inserting beginning balances and entering transactions for March. (Factory overhead incurred is to be posted to the control account only.)

(2) In itemized form, compute the total cost of each job at the end of March.

(3) Determine the amount of over- or under applied factory overhead remaining in the overhead control account.

Reference no: EM132786023

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