ACCOUNTING 201-Moody Blues Chocolate Factory uses job

  

Complete Problem # 31 in Chapter 3that focuses on Comprehensive Job Costing; and,

Moody Blues Chocolate Factory uses job costing to cost its products. In its first quarter of operations, the company incurred the following material and labor costs in manufacturing a batch of its chocolate candies (the company uses normal costing to apply overhead to products and uses machine hours as the cost driver):

Materials data:

Direct material purchases

$100,000

Direct materials used in production (cost)

85,000

Labor data:

Direct labor costs

60,000

Manufacturing overhead data:

Overhead application rate per machine hour

9.00

Machine hours used

10,000

Inventory data:

Transferred to finished goods

210,000

Cost of goods sold during quarter

190,000

1. Calculate the direct materials ending inventory.
2. Calculate the work in process ending inventory.
3. Calculate the finished-goods ending inventory.
4. At the end of the quarter, Moody Blues’ actual manufacturing overhead costs totaled $80,000. Calculate the over – or underapplied overhead for that period.