Heritage Gardens provides complete garden design and landscaping services. The c
ID: 2329527 • Letter: H
Question
Heritage Gardens provides complete garden design and landscaping services. The company uses a job-order costing system to track the costs of its landscaping projects. The table below provides data concerning the three landscaping projects that were in progress during May. There was no work in process at the beginning of May. Praject Williams Chandler Nguyen 350 230 270 Direct materials Direct labor S 6,300 3,300 5,100 S 3,900 2,500 3,000 Actual overhead costs were $43,000 for May. Overhead costs are applied to projects on the basis of designer-hours because most of the overhead is related to the costs of the garden design studio. The predetermined overhead rate is $60 per designer-hour. The Williams and Chandler projects were completed in May; the Nguyen project was not completed by the end of the month. No other jobs were in process during May Required: 1. Compute the amount of overhead cost that would have been applied to each project during May. WilliamsChandler Nguyen S 21,00013,800 16,200 Overhead cost 2. Determine the cost of goods manufactured for May. of goods 3. What is the accumulated cost of the work in process at the end of the month? 4. Determine the underapplied or overapplied overhead for May. overheadExplanation / Answer
Williams Chandler Nguyen total Direct materials 6,300 3,300 5,100 14,700 Direct labor 3,900 2,500 3,000 9,400 overhead applied (DLH's *OH rate) 21000 13800 16200 51000 total 31,200 19,600 24,300 75,100 Status Finished Finished WIP 1) Project Williams Chandler Nguyen overhead cost 21000 13800 16200 2) cost of goods manufactured 50,800 (williams+project Chandler) 3) Work in process 24,300 4) overhead overapplied 8000 (applied overhead - actual overhead)