Agassi Company uses a job order cost system in each of its three manufacturing departments . Manufacturing overhead is applied to jobs on the basis of direct lab (); cost in Department D , direct labor hours in Department E , and machine hours in Department K . In establishing the predetermined overhead rates for 2017 , the following estimates were made for the year .
During January , the job cost sheets showed the following costs and production data .
Instructions ( a ) Compute the predetermined overhead rate for each department .
( b ) Compute the total manufacturing costs assigned to jobs in January in each department .
( c ) Compute the under- or over applied overhead for each department at January 31 .
E3-3
the ledger of American Company has the following work in process account .
Production records show that there were 400 units in the beginning inventory , 30 % complete , 1,600 units started , and 1,700 units transferred out . The beginning work in process had materials cost of $ 2,040 and conversion costs of $ 1,550 . The units in ending inventory were 40 % complete . Materials are entered at the beginning of the painting process .
Instructions ( a ) How many units are in process at May 31 ? ( b ) What is the unit materials cost for May ?