Reference no: EM132543198

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

Material A$19,000

Material B 13,500

Indirect materials 4,500

Total$37,000

2. Issued direct materials and indirect materials with this summary of requisitions:

                                       Job X                 Job Y                Total

Material A                    $8,600            $17,200           $25,800

Material B                        3,600                 8,600          12,200

Subtotal                         $12,200              $25,800            $38,000

Indirect materials                                                           40,500

Total                                                                            $78,500

3. Factory labor incurred is summarized by these time tickets:

Job X $23,200

Job Y 15,600

Indirect labor 29,500

Total $68,300

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

Utilities $3,600

Depreciation 19,200

Insurance 3,100

Total $25,900

5. Factory overhead costs were applied to jobs at the predetermined rate of $49.00 per machine hour. Job X incurred 1,100 machine hours; Job Y used 800 machine hours.

6. 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:

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

Question 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.