Limestone Garments started and finished job no. 125 during March. The job required $30,000 of direct material and 100 hours of direct labour at $15 per hour. The predetermined overhead rate is $20 per direct labour hour.
During March, direct materials requisitions for all jobs totalled $300,000; the total direct labour hours and cost were 8,000 hours at $15 per hour; and the total cost of jobs completed was $400,000. All of these figures include data that pertain to job no. 125.
Required:
A. Prepare journal entries that summarize March's's total activity for Limestone Garments.
B. Determine the cost of job no. 125.
C. Assuming no opening balance, if actual manufacturing overhead costs for Limestone for the period totaled $200,000 was overhead over or underapplied and by how much?

Question

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The Answer of Limestone Garments started and finished job no. 125 during March. The job required $30,000 of direct material and 100 hours of direct labour at $15 per hour. The predetermined overhead rate is $20 per direct labour hour.
During March, direct materials requisitions for all jobs totalled $300,000; the total direct labour hours and cost were 8,000 hours at $15 per hour; and the total cost of jobs completed was $400,000. All of these figures include data that pertain to job no. 125.
Required:
A. Prepare journal entries that summarize March's's total activity for Limestone Garments.
B. Determine the cost of job no. 125.
C. Assuming no opening balance, if actual manufacturing overhead costs for Limestone for the period totaled $200,000 was overhead over or underapplied and by how much?

Limestone Garments Started and Finished Job No