Dina Corp.uses a job order cost accounting system.Four jobs were started during the current year.The following is a record of the costs incurred:
Actual overhead costs were $55,800.The predetermined overhead allocation rate is $2.40 per direct labor hour.During the year, Jobs 1010, 1012, and 1013 were completed.Also, Jobs 1010 and 1013 were sold for $387,000.Assuming that this is Dina's first year of operations:
(A.Calculate the balance in the Goods in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts.
(B.Does the Factory Overhead account balance indicate an over- or underapplication of overhead? Prepare the entry to close this out assuming the amount is not material.

Question

Dina Corp.uses a job order cost accounting system.Four jobs were started during the current year.The following is a record of the costs incurred:
  Actual overhead costs were $55,800.The predetermined overhead allocation rate is $2.40 per direct labor hour.During the year, Jobs 1010, 1012, and 1013 were completed.Also, Jobs 1010 and 1013 were sold for $387,000.Assuming that this is Dina's first year of operations:
(A.Calculate the balance in the Goods in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts.
(B.Does the Factory Overhead account balance indicate an over- or underapplication of overhead? Prepare the entry to close this out assuming the amount is not material.

Quizplus · Accepted Answer

The Answer of Dina Corp.uses a job order cost accounting system.Four jobs were started during the current year.The following is a record of the costs incurred:
  Actual overhead costs were $55,800.The predetermined overhead allocation rate is $2.40 per direct labor hour.During the year, Jobs 1010, 1012, and 1013 were completed.Also, Jobs 1010 and 1013 were sold for $387,000.Assuming that this is Dina's first year of operations:
(A.Calculate the balance in the Goods in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts.
(B.Does the Factory Overhead account balance indicate an over- or underapplication of overhead? Prepare the entry to close this out assuming the amount is not material.

Dina CorpUses a Job Order Cost Accounting System