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 $12,660 Work-in-Process 21,470 Inventory Finished Goods Inventory 8,770 Work-in-process inventory is made up of three jobs with the following costs: Job Job Job 114 115 116 Direct $2,429 $2,602 $5,000 materials Direct labor 1,740 1,460 4,180 Applied 957 803 2,299 overhead During April, Sangvikar experienced the transactions listed below. a. Materials purchased on account, $29,010. b. Materials requisitioned: Job 114, $16,440; Job 115, $12,180; and Job 116, $5,180. C. Job tickets were collected and summarized: Job 114, 150 hours at $12 per hour; Job 115, 200 hours at $14 per hour; and Job 116, 90 hours at $17 per hour. d. Overhead is applied on the basis of direct labor cost. e. Actual overhead was $4,695. 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: 1. Calculate the predetermined overhead rate based on direct labor cost. % of direct labor cost 2. Calculate the ending balance for each job as of April 30. When required, round your answers to the nearest dollar. Use your rounded answers in subsequent computations, if necessary. Ending Balance Job 114 $ Job 115 $ Job 116 3. Calculate the ending balance of Work in Process as of April 30. When required, round your answer to the nearest dollar. 4. Calculate the cost of goods sold for April. When required, round your answer to the nearest dollar. 5. Assuming that Sangvikar prices its jobs at cost plus 25 percent, calculate the price of the one job that was sold during April. When required, round your answer to the nearest dollar.

Answer 1

				job 114	Job 115	Job 116	total
	Beginning balances
	Direct materials			2,429	2,602	5,000	10,031
	direct labor			1,740	1,460	4,180	7,380
	overhead applied			957	803	2,299	4,059
	total beginning balances			5,126	4,865	11,479	21,470
	cost added during the year
	Direct materials			16,440	12,180	5,180	33,800
	direct labor			1800	2800	1530	6130
	overhead applied			990	1540	842	3372
	total cost added			19,230	16,520	7,552	43,302
	total cost of job			24,356	21,385	19,031	64,772
1)		predetermined overhead rae
		957/1740
		55%
2)			Ending bal
		Job 114	24,356
		job 115	21,385
		job 116	19,031
3)		Ending balance of WIP-April 30
				43,387
4)		cost of goods sold		unadjusted
				21,385
5)		price of job		21385*125%
				26731