Question

Applying Overhead to Jobs, Costing Jobs Instructions Amount Descriptions Job-Order Cost Sheet Calculations and Joo Price Instructions Applying Overhead to Jobs, Costing Jobs Gorman Company builds internal conveyor equipment to client specifications. On October 1, Job 877 was in process with a cost of $18.640 to date. During October, Jobs 878 879 and 880 were started Data on costs added during October for all jobs are as follows: Job 877 Job 878 Job 879 Job 880 Direct materials $14,460 $6.000 $3,500 $1,800 Direct labor 14,800 8,5001,750 2.150

Answer 1

Answer-1- GORMON COMPANY
Job-Order Cost Sheet

For the Month of October

	Job 877	Job 878	Job 879	Job 880
Beginning Balance	$18,640
Direct Materials	$14,460	$6,000	$3,500	$1,800
Direct Labor	$14,800	$8,500	$1,750	$2,150
Total	$47,900	$14,500	$5,250	$3,950

2-Overhead applied to each Job during October

Particulars	Direct Labor Costs (A)	Overhead Rate (B)	Applied Overhead (A*B)
Job 877	$14,800	80%	$11,840
Job 878	$8,500	80%	$6,800
Job 879	$1,750	80%	1,400
Job 880	$2,150	80%	1,720

3-Balance work-in process on October 31

Particulars	Job 878	Job 879	Job 880	Total
Beginning Balance
Direct Materials	$6,000	$3,500	$1,800	$11,300
Direct Labor	$8,500	$1,750	$2,150	$12,400
Applied Overhead	$6,800	$1,400	$1,720	$9,920
Ending work in process on Oct 31	$21,300	$6,650	$5,670	$$33,620

Job 877 is completed on oct.28 hence, work in process for job 877 is $0.

4-Price of Job 877 is as follows:-

Price of Job 877= Total cost of Job 877 +(50% of cost)

=$59,740+(50% of $59,740)

=$59,740+$29,870

=$89,610

Working Note:-

Total cost of Job 877= Beginning + Direct Materials +Direct Labor+Overheads

=$18,640+$14,460+$14,800+$11,840

=$59,740

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