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


Direct materials used in production (cost)


Labor data:

Direct labor costs


Manufacturing overhead data:

Overhead application rate per machine hour


Machine hours used


Inventory data:

Transferred to finished goods


Cost of goods sold during quarter


  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.