Reference no: EM132583009

Hooper Manufacturing Company employs a job order cost accounting system and keeps perpetual inventory records. The following transactions occurred in the first month of operations:

Direct materials requisitioned during the month:

Job 56 $12,000

Job 57 6,000

Job 58 14,000

          $32,000

Direct labour incurred and charged to jobs during the month was:

Job 56 $20,000

Job 57 16,000

Job 58 10,000

            $46,000

1. Manufacturing overhead was applied to jobs worked on using a predetermined overhead rate based on 80% of direct labour costs.
2. Actual manufacturing overhead costs incurred during the month amounted to $39,000.
3. Job 56 consisting of 2,000 units and Job 58 consisting of 400 units were completed during the month.

Instructions

Prepare journal entries to record the above transactions.

Answer the following:

Question 1: How much manufacturing overhead was applied to Job 58 during the month?

Question 2: Calculate the unit cost of Jobs 56 and 58.

Question 3: What is the balance in Work in Process Inventory at the end of the month?