Question

Balance on 3/1 $ 5,000 5,000 $ 10,000 Work in Process Job 33 Job 34 Source documents revealed the following during March: Materials Labor Time Tickets $ 5,700 3,800 2,800 2,500 $ 14,800 Requisitions Forms $ 2,800 3,900 3,300 1,100 $ 11,100 Status of Job at Month-End Completed and sold Completed, but not sold In process Job 33 Job 34 Job 35 Indirect The company applies overhead to products at a rate of 50 percent of direct labor cost. Required: 1. Compute the cost of Jobs 33, 34, and 35 at the end of the month. Total Manufacturing Cost Job 33 Job 34 Job 35 2. Calculate the balance in the Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts at month-end. Work in Process Inventory Finished Goods Inventory Cost of Goods Sold

Answer 1

1.
	Job 33	Job 34	Job 35
Work in process balance on 3/1	5000	5000	0
(+) Materials used during March	2800	3900	3300
(+) Labor cost during March	5700	3800	2800
(+) Overhead applied ( 50% * Labor cost )	2850	1900	1400
Total manufacturing cost	16350	14600	7500

2.
Work in process inventory ( Job 35 )	7500
Finished goods inventory (Job 34)	14600
Cost of goods sold (Job 33)	16350