Question

Prepare Job-Order Cost Sheets, Predetermined Overhead Rate, Ending Balance of WIP, Finished Goods, and Instructions Amount Descriptions Overhead Rate Job-Order Cost Sheets Concluding Questions Instructions Prepare Job-Order Cost Sheets, Predetermined Overhead Rate, Ending Balance of WIP, Finished Goods, and COGS At the beginning of June, Rhone Company had two jobs in process, Job 44 and Job 45, with the following accumulated cost information: Job 44 Job 45 Direct materials $5,100 $1,500 Direct labor 1,200 3,000 Applied overhead 780 1,950 Balance, June 1 $7,080 $6,450

help please. theres a lot of pictures, but it is 1 problem.

Answer 1

1.Calculation of overhead rate :

From the June beginning balances, we know that Applied overhead is $780 and Direct labor cost is $1200.

----> Overhead rate based on Direct labor cost = $780/$1200 X 100 = 65%

2.

Rhone Company Job-Order Cost Sheets    For the Month of June
1		Job 44	Job 45	Job 46	Job 47
2	Beginning balance,June 1	$7080	$6450	-	-
3	Direct Materials	2500	7110	1800	1700
4	Direct Labor	800	6400	900	560
5	Overhead Applied*	520	4160	585	364
6	Ending balance, June 30	$10,900	$24,120	$3285	$2624

* Overhead applied = 65% of Direct labor cost.

3.

Calculation of the ending balance of work-in-process :

----> At the end of the June, only Job 46 is pending. Balance of work-in-process at the June 30 is $3285.

Calculation of the ending balance of Finished goods Inventory :

----> Job 44 and Job 47 are completed at the end of the month. Balance of Finished goods inventory is $13,524 [$10,900+$2624]

4.Calculation of Cost of goods sold :

At the end of the June Job 45 was sold. The cost of Job 45 is $24,120 which is cost of goods sold.