Question

Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost On April 1, Sangvikar Company had the following balances in its inventory accounts: Materials Inventory $12,600 Work-in-Process Inventory 21,240 Finished Goods Inventory 8,880 Work-in-process inventory is made up of three jobs with the following costs: Job 114 Job 115 Job 116 Direct materials $2,359 $2,601 $2,945 Direct labor 1,860 1,540 4,220 Applied overhead 1,395 1,155 3,165 During April, Sangvikar experienced the transactions listed below. a. Materials purchased on account, $28,880. b. Materials requisitioned: Job 114, $16,000; Job 115, $12,620; and Job 116, $4,900. C. Job tickets were collected and summarized: Job 114, 170 hours at $11 per hour; Job 115, 210 hours at $14 per hour; and Job 116, 80 hours at $1 per hour d. Overhead is applied on the basis of direct labor cost. e. Actual overhead was $4,505. f. Job 115 was completed and transferred to the finished goods warehouse. 9. Job 115 was shipped, and the customer was billed for 125 percent of the cost. Required:

Answer 1

Solution:

The Correct answer for 4. is  

Cost of goods sold for April is ending balance of Job 115 $23,061.