(SOLVED) JOB ORDER COSTING Neely International prints sales fliers for retail and mail-order companies. Production costs are accounted for using a job cost system.

Question

JOB ORDER COSTING

Neely International prints sales fliers for retail and mail-order companies. Production costs are accounted for using a job cost system. At the beginning of June, raw materials inventories totaled $7,800; two jobs were in process - Job 225 with assigned costs (including direct materials, direct labor and applied overhead) of $13,750, and Job 226 with assigned costs (including direct materials, direct labor and applied overhead) of $1,800 - there were no finished goods inventories. There was no under-applied or over-applied manufacturing overhead on June 1. The following information summarized June manufacturing activities:

- Purchased raw materials costing $59,000 on account, including both direct and indirect materials.

- Materials needed to complete Job 226 and start two new jobs, 227 and 228: Job 226 -- $3,600 o Job 227 - $16,000 o Job 228 - $18,400

- Incurred June salaries and wages as follows: Job 225 (500 direct labor hours @ $10 per hour) - $5,000 o Job 226 (1,500 direct labor hours @ $10 per hour) — $15,000 o Job 227 (2,050 direct labor hours @ $10 per hour — $20,500 o Job 228 (800 direct labor hours @ $10 per hour) — $8,000 o Factory supervisor (supervises all jobs) - $5,000

- Used indirect materials costing $5,500

- Recognized Depreciation on factory fixed assets of $4,000

- Incurred miscellaneous manufacturing overhead cost of $10,750 on account.

- Applied manufacturing overhead at the rate of $4 per direct labor hour.

- Completed Jobs 225, 226, and 227. - Delivered Jobs 225 and 226 to customers.

- The company will not close out the balance in the manufacturing overhead account until the end of the fiscal year on December 31.

Determine the ending balances as of June 30 for the following accounts:

a. Raw Materials Inventory at June 30:

b. Work-in Process Inventory at June 30:

c. Finished Goods Inventory at June 30: $_________________

d. Cost of Goods Sold for the month of June: $_______________

e. Cost of Goods Manufactured for the month of June: $_____________

f. _____________

g. Manufacturing Overhead was $_____________over applied / under applied in June (circle one)

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