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Charlie Inc. 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.

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

Total Factory overhead applied in July was $900,600

a. Compute the predetermined factory overhead rate

b. Compute the amount of direct materials account at the end of July

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

d. Compute the ending balance of the WIP Inventory account for July

e. Prepare the Statement of COGM for July

f. Compute the amount of overapplied or underapplied overhead

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

July 31 0 Inventories Direct Material WIP F/G July 1 36,500 41,000 0 2 0 Cost of Goods Sold 55,000 Direct Materials Purchased in July Materials used in Production: X13 X14 X15 16,380 24,220 14,000 Factory labour hours used ($30/hr) X13 X14 X15 Indirect Labour 3,500 2,800 1,600 6,900 Other Factory OH Costs incurred Rent Utilities Repairs and Maintenance Depreciation Other 131,500 180,600 188,500 131,100 56,000

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