Reference no: EM133143324
Question - PT. Indah Sari uses a job-order costing system to produce custom lamps. The predetermined overhead rate is based on the allocation base of the number of machine hours. At the beginning of the year, the company estimates that manufacturing overhead costs for the year are $240,000 and machine hours of 8,000 hours. The following information relates to activities in April of the current year:
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Job A
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Job B
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Job C
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Total
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Work in Process, April. 1
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$16,000
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$26,000
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$38,000
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$80,000
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April Production Activities:
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-Use of Raw Materials
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$4,000
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$4,800
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$7,200
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$16,000
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-Direct labor costs
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$2,400
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$3,600
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$4,000
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$10,000
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-Machine Clock
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400
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700
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900
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2,000
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-Direct Labor Hours
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120
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180
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200
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500
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The actual manufacturing overhead incurred in April was $61,000.
Required -
1. Calculate the predetermined overhead rate.
2. Determine the total cost associated with each job.
3. What is the value of Cost of Production?
4. What is the value of the finished goods in process?
5. What is the value of the final finished goods?
6. How much does under/over applied overhead cost?
7. Determine COGS Value after adjusting for over/underapplied OH.