Question

Prepare Job-Order Cost Sheets, Predetermined Overhead Rate, Ending Balance of WIP, Finished Goods, and COGS

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		$1,800
Direct labour	4,400		3,520
Applied overhead	3,800		3,040
Balance, June 1	$13,200		$8,360

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
Direct materials	$2,500		$7,110		$1,800		$1,700
Direct labour	800		6,400		900		560

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.

Required:

1. Calculate the overhead rate based on direct labour cost. Round the percentage to the nearest whole number. For example, .6372 would be rounded to 64%.
%

2. Prepare a brief job-order cost sheet for the four jobs. Show the balance as of June 1 as well as direct materials and direct labour added in June. Apply overhead to the four jobs for the month of June, and show the ending balances. Round your answers to the nearest whole dollar. For those boxes in which no entry is required, enter "0".

Donewell Company
Job-Order Cost Sheet
For the Month of June
	Job 44	Job 45	Job 46	Job 47
Beginning balance, June 1	$	$	$	$
Direct materials
Direct labour
Applied overhead
Total, June 30	$	$	$	$

3. Calculate the ending balances of Work in Process and Finished Goods as of June 30. Round your answers to the nearest dollar.

Work in process	$
Finished goods	$

4. Calculate the Cost of Goods Sold for June. Round your answer to the nearest dollar.
$

Answer 1

1) overhead rate = 3800/4400 = 86%

2) Calculate following

Donewell Company
Job-Order Cost Sheet
For the Month of June
	Job 44	Job 45	Job 46	Job 47
Beginning balance, June 1	$13200	$8360	$	$
Direct materials	2500	7110	1800	1700
Direct labour	800	6400	900	560
Applied overhead	688	5504	774	482
Total, June 30	$17188	$27374	$3474	$2742

3. Calculate the ending balances of Work in Process and Finished Goods as of June 30. Round your answers to the nearest dollar.

Work in process	$3474
Finished goods	17188+2742 = 19930

4) Cost of goods sold = 27374