Hodges Company Uses a Job-Order Costing System and Has the Following

question 66

Essay

Hodges Company uses a job-order costing system and has the following information for the first week of June:
1. $$\text { Direct labor and materials used }$$

Job No.	Direct Material	Direct Labor Hours
498	$1,500	116
506	960	16
507	415	18
508	345	42
509	652	24
5011	308	10
512	835	30
Total	$5,015	256

2. $\text { The directlabor wage rate is } \$ 4 \text { per hour }$
3. $\text { The overhead rate is } \$ 5 \text { per direct labor hour }$
4. $\text { Actual overthead costs for the week } \$ 1.480$
5. $\text { Jobs completed: Nos. } 498,506 \text {, and } 509$
6. $\text { The factory had no wotk in process at the begining of the week }$

Required:
a. $\text { Prepare a summary that } \text {will show the total cost assigne do each job }$
b. $\text { Compute the anount of overhe ad over- of underapplied duming the week }$
c. Calculate the cost of the work in process at the end of the week

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Definitions:

Prompt Payment Discount

A discount offered to customers for paying their invoices early, serving as an incentive for quicker payment.

Credit Bureaus

Organizations that collect and maintain individual credit information, supplying it to creditors to help them decide whether to lend money.

Credit Applicant

An individual or entity that applies for a loan or credit from a financial institution or lender.

Accounts Receivable

Financial obligations customers have towards a business for utilized or received goods and services that remain unpaid.