Question

Question 13 points) Data for the next 2 questions: The Shaw Company uses a job-order cost system. Factory overhead is applied to jobs at the rate of 140% of direct labor cost. Jobs 475, 477, and 478 were completed during April and transferred to finished goods. Jobs 475 and 478 have been delivered to the customer. The following data were recorded for April: 100 Added During April Direct Direct Number Materials Labor $ 500 S 800 476 $ 700 $1,000 477 $1,000 $1,500 478 $1,200 $2,000 Q15. Compute Donaldson's Work in Process inventory balance on April 30th Example of answer: 4500 Question 16 (5 points) Q16. Compute Donaldson's Cost of Goods Sold for month of April. Example of answer: 4500 /

Answer 1

Answer

• Answer #15
  >WIP balance = Cost of Job 476 which is not yet complete
  = $ 700 + $ 1000 + ($1000 x 140%)
  = 700 + 1000 + 1400
  = $ 3,100 [Enter 3100]
• Answer #16
  >Cost of Goods Sold = Cost of Job 475 + Cost of Job 478
  = ($500 + $ 800 + [$800 x 140%]) + ($1200 + 2000 + [$2000 x 140%])
  = (500 + 800 + 1120) + (1200 + 2000 + 2800)
  = 2420 + 6000
  = $ 8,420 [Enter 8420]