Powell Company uses a job costing system. During the month of May, Powell spent most of its time on job A50, which was started late in April. Following is cost information for job A50, other May costs, and relevant annual estimates. Required:
(1) What is the overhead to be applied for May to job A50 upon completion on May 15?
(2) What are total manufacturing costs for May for job A50?
(3) Prepare the journal entry when job A50 is completed on May 15, assuming that the May 1 work-in-process inventory for job A50 was $600.
(4) What is the profit on job A50 when it is sold on May 15?
(5) Calculate the under-or over-applied overhead for May.

Question

Powell Company uses a job costing system. During the month of May, Powell spent most of its time on job A50, which was started late in April. Following is cost information for job A50, other May costs, and relevant annual estimates.  Required:
(1) What is the overhead to be applied for May to job A50 upon completion on May 15?
(2) What are total manufacturing costs for May for job A50?
(3) Prepare the journal entry when job A50 is completed on May 15, assuming that the May 1 work-in-process inventory for job A50 was $600.
(4) What is the profit on job A50 when it is sold on May 15?
(5) Calculate the under-or over-applied overhead for May.

Quizplus · Accepted Answer

The Answer of Powell Company uses a job costing system. During the month of May, Powell spent most of its time on job A50, which was started late in April. Following is cost information for job A50, other May costs, and relevant annual estimates.  Required:
(1) What is the overhead to be applied for May to job A50 upon completion on May 15?
(2) What are total manufacturing costs for May for job A50?
(3) Prepare the journal entry when job A50 is completed on May 15, assuming that the May 1 work-in-process inventory for job A50 was $600.
(4) What is the profit on job A50 when it is sold on May 15?
(5) Calculate the under-or over-applied overhead for May.

Powell Company Uses a Job Costing System