In its job costing system, Jupiter Co. applies MOH to jobs using a budgeted MOH rate based on direct labor (DL) cost. The rate,100% of direct labor cost, was calculated last December, and will be used throughout the current year. On July 1, Jupiter had one job, 101, in process, with direct material costs of $1,000 and direct labor costs of $2,000.
During July, direct material and direct labor costs were added to Job 101, as well as new Jobs 102 and 103, as follows:
Actual MOH cost for the month of July was $9,000. During the month, Jupiter completed Jobs 101 and 102.
Required:
a. What was Jupiter's Cost of Goods Manufactured for the month of July?
b. What was the balance in Work-in-Process Inventory at the end of July?
c. Was MOH underapplied or overapplied for the month of July? What does this mean for any balances in WIP Inventory and Finished Goods Inventory on the balance sheet? What does this mean for COGS on the income statement?

Question

In its job costing system, Jupiter Co. applies MOH to jobs using a budgeted MOH rate based on direct labor (DL) cost. The rate,100% of direct labor cost, was calculated last December, and will be used throughout the current year. On July 1, Jupiter had one job, 101, in process, with direct material costs of $1,000 and direct labor costs of $2,000.
During July, direct material and direct labor costs were added to Job 101, as well as new Jobs 102 and 103, as follows:
  Actual MOH cost for the month of July was $9,000. During the month, Jupiter completed Jobs 101 and 102.
Required:
a. What was Jupiter's Cost of Goods Manufactured for the month of July?
b. What was the balance in Work-in-Process Inventory at the end of July?
c. Was MOH underapplied or overapplied for the month of July? What does this mean for any balances in WIP Inventory and Finished Goods Inventory on the balance sheet? What does this mean for COGS on the income statement?

Quizplus · Accepted Answer

The Answer of In its job costing system, Jupiter Co. applies MOH to jobs using a budgeted MOH rate based on direct labor (DL) cost. The rate,100% of direct labor cost, was calculated last December, and will be used throughout the current year. On July 1, Jupiter had one job, 101, in process, with direct material costs of $1,000 and direct labor costs of $2,000.
During July, direct material and direct labor costs were added to Job 101, as well as new Jobs 102 and 103, as follows:
  Actual MOH cost for the month of July was $9,000. During the month, Jupiter completed Jobs 101 and 102.
Required:
a. What was Jupiter's Cost of Goods Manufactured for the month of July?
b. What was the balance in Work-in-Process Inventory at the end of July?
c. Was MOH underapplied or overapplied for the month of July? What does this mean for any balances in WIP Inventory and Finished Goods Inventory on the balance sheet? What does this mean for COGS on the income statement?

In Its Job Costing System, Jupiter Co