Question

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	$5,200	$1,250
Direct labor	1,600	3,500
Applied overhead	1,120	2,450
Balance, June 1	$7,920	$7,200

During June, two more jobs (46 and 47) were started. The following direct materials and direct labor costs were added to the four jobs during the month of June:

	Job 44	Job 45	Job 46	Job 47
Direct materials	$2,550	$7,200	$1,950	$1,650
Direct labor	740	6,360	960	480

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 labor cost. Round to three decimal places.
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 labor added in June. Apply overhead to the four jobs for the month of June, and show the ending balances.
3.	Calculate the ending balances of Work in Process and Finished Goods as of June 30.
4.	Calculate the Cost of Goods Sold for June.

X

Amount Descriptions

Refer to the list below for the exact wording of text items within your job-order cost sheets.

Amount Descriptions
Applied overhead
Beginning balance, June 1
Direct labor
Direct materials
Total, June 30

X

Overhead Rate

1. Calculate the overhead rate based on direct labor cost. Round to three decimal places.

The overhead rate based on direct labor cost is %

Job-Order Cost Sheets

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 labor added in June. Apply overhead to the four jobs for the month of June, and show the ending balances. Refer to Amount Descriptions for the exact wording of text items within your job-order cost sheets. All amount cells must have an entry; enter zeros as needed

3. Calculate the ending balances of Work in Process and Finished Goods as of June 30.

Work in Process:
Finished Goods:

4. Calculate the Cost of Goods Sold for June.

Cost of Goods Sold:

Answer 1

1)	Particulars			Job 44	Job 45
	Applied OH		(a)	$ 1,120.00	$ 2,450.00
	Direct Labor		(b)	$ 1,600.00	$ 3,500.00
	Rate		(a/b)	0.7	0.7

2)	Particulars		Job 44	Job 45	Job 46	Job 47
	Beginning Balance		$   7,920.00	$   7,200.00
	Direct Materials		$   2,550.00	$   7,200.00	$ 1,950.00	$ 1,650.00
	Direct Labor		$      740.00	$   6,360.00	$    960.00	$    480.00
	Applied OH		$      518.00	$   4,452.00	$    672.00	$    336.00
	Ending Balance		$ 11,728.00	$ 25,212.00	$ 3,582.00	$ 2,466.00

3)
	WIP
	Job still active		$ 42,988.00	(Job 44, 45, 46, 47)
Less:	Jobs Completed		$ 39,406.00	(Job 44, 45 and 47)
	Ending Balance		$   3,582.00
	Finished Goods
	Jobs Completed		$ 39,406.00	(Job 44, 45 and 47)
Less:	Job Sold		$ 25,212.00	(Job 45)
	Ending Balance		$ 14,194.00
4)	Cost of Goods sold		$ 25,212.00	(Job 45)