Question

3. Prepare the journal entries reflecting the compu 79. The selling price is 140 percent of cost. OBJECTIVE 3 4 Exercise 5.12 Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost On April 1, Sangvikar Company had the following balances in its inventory accounts: $12,730 Materials Inventory 21,340 Work-in-Process Inventory 8,700 Finished Goods Inventory Work-in-process inventory is made up of three jobs with the following costs: Job 115 Job 116 Job 114 Direct materials $2,411 $3,650 $2,640 Direct labor 1,800 1,560 4,300 Applied overhead 1,170 2,795 1,014

Answer 1

				job 114	Job 115	Job 116	total
	Beginning balances
	Direct materials			2,411	2,640	3,650	8,701
	direct labor			1,800	1,560	4,300	7,660
	overhead applied			1,170	1,014	2,795	4,979
	total beginning balances			5,381	5,214	10,745	21,340
	cost added during the year
	Direct materials			16,500	12,200	5,000	33,700
	direct labor			1800	3080	1440	6320
	overhead applied			1170	2002	936	4108
	total cost added			19,470	17,282	7,376	44,128
	total cost of job			24,851	22,496	18,121	65,468
1)		predetermined overhead rae
		1170/1800
		65%
2)			Ending bal
		Job 114	24,851
		job 115	22,496
		job 116	18,121
3)		Ending balance of WIP-April 30
				42,972
4)		cost of goods sold		unadjusted
				22,496
5)		price of job		22496*125%
				28120