Question 1: Tata Motors produces trucks for commercial use. The company uses a normal job-order costing system to calcul

[answerhappygod]

Question 1 Tata Motors Produces Trucks For Commercial Use The Company Uses A Normal Job Order Costing System To Calcul 1 (83.15 KiB) Viewed 42 times

Question 1: Tata Motors produces trucks for commercial use. The company uses a normal job-order costing system to calculate its cost of goods manufactured. On January 01, 2019, there was only one job in process with the following costs: Direct materials Direct labour Applied overhead Total The following balances were taken from the general ledger of the company as of January 1, 2019: $35,000 $65,000 Direct materials inventory Finished goods inventory (for Job D-1) During the year 2016, the following events occurred: Job A-1 $ 5,000 15,000 24,000 $44,000 Direct materials were purchased on account for $275,000 Two more jobs were started: Job B-1 and Job C-1. Direct materials and direct labour costs incurred by each job in process during the year 2019 are as follows: Job A-1 Job B-1 $150,000 $30,000 $150,000 $35,000 The company incurred the following actual factory overhead during the year: Direct Materials Direct Labour Job C-1 $10,000 $15,000 Factory rent $120,000 Factory supplies $ 45,500 Indirect labour $ 75,750 Jobs A-1 and B-1 were completed, and Jobs D-1 and A-1 were sold. a. Calculate the total applied overhead for the year 2019 if the factory overhead costs are applied to each job on the basis of direct labour dollars. [2 marks] b. Determine whether overhead is over-applied or under-applied. By how much? [1 mark] c. Prepare simple job order cost sheets for jobs A-1, B-1, and C-1. (3 Marks] d. Prepare a schedule of cost of goods sold, identifying both normal and adjusted cost of goods sold, for the year ended December 31, 2019. [4 Marks]