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Determining Manufacturing Costs Wagner Printing Inc. began printing operations on July 1. Jobs 7-01 and 7-02 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 7-03 and 7-04 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $1,710 of indirect materials and $6,000 of indirect labor were used during the month. The cost sheets, in summary form, for the four jobs during the month are as follows: Job 7-01 Job 7-02 Direct materials 17,710 Direct materials 8,280 Direct labor 6,800 Direct labor 3,500 Factory overhead 3,740 Factory overhead 1,925 Total 28,250 Total 13,705 Job 7-03 Job 7-04 Direct materials 22,330 5,100 Direct materials Direct labor Direct labor 7,500 1,000 Factory overhead ? Factory overhead ? Determine each of the following for July: a. Direct and indirect materials used. Direct materials used and transferred to Work in Process II Indirect materials used and transferred to Factory Overhead b. Direct and indirect labor used. Direct labor used and transferred to Work in Process Indirect labor used and transferred to Factory Overhead C. Factory overhead applied (a single overhead rate is used based on direct labor cost). s d. Cost of completed Jobs 7-01 and 7-02. . s e. Assume that in addition to indirect materials and indirect labor, factory overhead of $2,900 was incurred during July. Determine the overapplied or underapplied overhead for July. 3 underapplied overapplied

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