Question

Question 5 Bertrand Manufacturing uses a job-order cost system and applies overhead to production on the basis of direct labour costs. On January 1, 2020, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $30,000, direct labour $15,200, and manufacturing overhead $20,200. As of January 1, Job No. 49 had been completed at a cost of $120,200 and was part of finished goods inventory. There was a $25,500 balance in the Raw Materials Inventory account. During the month of January, Bertrand Manufacturing began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $152,000 and $199,000, respectively. The following additional events occurred during the month: 1. Bertrand purchased additional raw materials of $100,000 on account. 2. It incurred factory labour costs of $75,400. Of this amount, $18,200 related to employer payroll taxes. 3. It incurred manufacturing overhead costs as follows: indirect materials $18,200, indirect labour $17,100, depreciation expense $14,400, and various other manufacturing overhead costs on account $22,700. 4. It assigned direct materials and direct labour to jobs as follows: Job No. 50 Direct Materials $12,500 42,400 35,200 Direct Labour $7,000 28,100 22,200 51 52

Answer 1

Solution:

Job No. 50
Date	Direct Materials	Direct Labor	Manufacturing Overhead
Beg.	$30,000	$15,200	$20,200
Jan.	$12,500	$7,000	$14,630
	$42,500	$22,200	$34,830
Cost Of Completed job
	Direct Material	$42,500
	Direct Labor	$22,200
	Manufacturing Overhead	$34,830
	Total Cost	$99,530

Job No. 51
Date	Direct Materials	Direct Labor	Manufacturing Overhead
Jan.	$42,400	$28,100	$58,729
	$42,400	$28,100	$58,729
Cost Of Completed job
	Direct Material	$42,400
	Direct Labor	$28,100
	Manufacturing Overhead	$58,729
	Total Cost	$1,29,229