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Haughton Company uses a job costing system for its production costs and a predetermined factory overhead rate based on direct labor costs to apply factory overhead to all jobs. During the month of July, the firm processed three jobs: X13, X14, and X15, of which X13 was started in June.

July 1. July 31

Inventories

Direct Materials $36,900 ?

Work-in-Process 41,800 ?

Finished Goods 0 0

Cost of Goods Sold $ ?

Direct materials purchased in July 59,000

Materials issued to proudction:

X13 16,860

X14 27,420

X15 14,200

Factory labor hours used ( $30/ hour) :

X13 3,700

X14 3,000

X15 1,800

Indirect labor 7,100

Other factory overhead costs incurred:

Rent $133,500

Utilities 336,600

Repairs and maintenance 190,500

Depreciation 133,100

Other 58,000

As of July 31, Job X13 was sold and Jobs X14 and X15 were still in process.

Total factory overhead applied in July was $1,071,000.

Required:

1. Compute the predetermined factory overhead rate.

2. Compute the amount of the Direct Materials account at the end of July.

3. Compute the actual factory overhead cost incurred during the month of July.

4. Compute the ending balance of the Work-in-Process Inventory account for July.

5. Prepare the Statement of Cost of Goods Manufactured for July.

6. Compute the amount of overapplied or underapplied overhead.

7. What is the cost per unit of Job X13 if it has a total of 100 units?

8. Prepare the Statement of Cost of Goods Sold for July.

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