Response to the following problem:
Chamlee Industries Inc. manufactures recreational vehicles. Chamlee Industries uses a job order cost system. The time tickets from May jobs are summarized below.
Job 5-100 $6,400
Job 5-101 3,900
Job 5-102 4,800
Job 5-103 2,900
Factory supervision 1,750
Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $30 per direct labor hour. The direct labor rate is $25 per hour.
a. Determine the total factory labor costs transferred to Work in Process and Factory Overhead for May.
b. Determine the amount of factory overhead applied to production for May.
c. Illustrate the effects of the factory overhead applied in (b) on the accounts and financial statements.