Question

At the beginning of June, Donewell Company had two jobs in process, Job 44 and Job 45, with the following accumulated cost information: Job 44 Job 45 Direct materials $5,000 $1,700 Direct labour 5,200 4,160 Applied overhead 3,100 2,480 Balance, June 1 $13,300 $8,340 During June, two more jobs (46 and 47) were started. The following direct materials and direct labour costs were added to the four jobs during the month of June: Job 44 Job 45 Job 46 Job 47 $7,110 Direct materials Direct labour $2,500 800 $1,800 900 $1,700 560 6,400 At the end of June, Jobs 44, 45, and 47 were completed. Only Job 45 was sold. On June 1, the balance in Finished Goods was zero.

5

Answer 1

1) Overhead rate = 3100/5200 = 60%

2) Job Cost sheet

	Job 44	Job 45	Job 46	Job 47
Beginning balance	13300	8340
Direct material	2500	7110	1800	1700
Direct labor	800	6400	900	560
Applied overhead	480	3840	540	336
Total	17080	25690	3240	2596

3) Work in process = $3240

Finished goods = 17080+2596 = 19676

4) Cost of goods sold = 25690