Voltus Communications, a manufacturer of communications equipment, uses a job costing system. Manufacturing overhead is applied based on machine hours and it uses a predetermined overhead rate with budgeted overhead of $3,600,000 for the year and 80,000 machine hours.
Voltus uses a financial year of 1 July 2018 to 30 June 2019 and all the activities for the year have been carried out. Summarised details for period 1 July 2018 to 31 May 2019 and for June 2019 follow. Jobs B12- 008,K12-009 and K12-011 were completed during June 2019 .All completed jobs except K12-009 have been sold by 30 June 2019.
|Jobs in process at 31 May 2019|
|Job numbers||Balance at 31 May 2019|
|Work carried out during June 2019|
|Job numbers||Direct material||Direct labour||Machine hours|
|Actual Manufacturing Overhead incurred||1July 2018 -31 May 2019||During June 2019|
|1 July 2018 – 31 May 2019||During June 2019|
|Raw Material purchases *||$2,895,000||$294,000|
|Direct labour cost||2,535,000||240,000|
|Account balances 1 July|
|Raw Material Inventory||$315,000|
|Work in Process Inventory||180,000|
|Finished Goods Inventory||375,000|
|Account balance 30 June 2019 Raw Material Inventory||$255,000|
*Raw material purchases and raw material inventory consist of both direct and indirect materials
- Calculate the amount of manufacturing overhead Voltus would have applied to jobs for the period 1 July 2018 to 31 May 2019.
- Calculate the amount of manufacturing overhead Voltus would have applied to jobs during June 2019.
- Determine the amount by which manufacturing overhead is overapplied or underapplied at 30 June 2019.
- Determine the balance in the finished goods account at 30 June 2019.
Click on Buy Solution and make payment. All prices shown above are in USD. Payment supported in all currencies. Price shown above includes the solution of all questions mentioned on this page. Please note that our prices are fixed (do not bargain).
After making payment, solution is sent within 2 to 5 minutes on your Email ID. But it may take up to 1 hour in case of high load on server. Solution is available in Word or Excel format unless otherwise specified.
If your question is slightly different from the above question, please contact us at firstname.lastname@example.org with your version of question.