Question

Swifty Company produces high-quality microscopes for education and health care uses. The company uses a job order costing system. Because the microscopes' optics require significant manual labor to ensure adherence to strict manufacturing specifications, the company applies overhead on the basis of direct labor hours. At the beginning of 2021, the company estimated its manufacturing overhead would be $1,960,000 and that employees would work a total of 78,400 direct labor hours. During March, the company worked on the following five jobs: Beginning Balance Direct Labor Hours added during March Job Direct Labor added during March $9,400 12,160 134 Direct Materials added during March $4,000 3,500 87,400 71,800 140 $118,600 121,450 19,800 158 300 212 3,050 36,650 33,850 287 36,350 2,600 301 18,990 1,400 21,845 $113,905 Total $296,200 $185,690 7,490 Jobs 134 and 158 were started in January, Jobs 212 and 287 were started in February, and Job 301 was started in March. During March, workers completed Jobs 134, 158, and 212. Jobs 134 and 212 were delivered to customers during March. Actual overhead for the month of March was $176,300. The manufacturing overhead account is disposed of annually, not monthly.

Answer 1

	1)	predetermined overhead rate
		Estimated MOH/Estimated DLH's
		1,960,000/78400
		25	DLH
		Job	BB	DM	DL	OH	total
		134	118,600	4,000	9,400	3500	135,500
		158	121,450	3,500	12,160	7500	144,610
		212	19,800	87,400	36,650	76250	220,100
		287	36,350	71,800	33,850	65000	207,000
		301		18,990	21,845	35000	75,835
		total	296,200	185,690	113,905	187250	783,045
	2)	total Manufacturing cost for March				486,845
	3)		Job 134	job 158	job 212	job 287	Job 301
		Total cost	135,500	144,610	220,100	207,000	75,835
	4)	Cost of goods manufactured			500,210
	5)	Work in process Account as of March 31				282,835
	6)	cost of goods sold for March				355,600