Question

On March 1 a dressmaker starts work on three custom-designed wedding dresses. The company uses job order costing and applies overhead to each job (dress) at the rate of 42% of direct materials costs. During the month, the jobs used direct materials as shown below. Job 1 Job 2 Job 3 Direct materials used $5,800 $7, 800 $2,300 During the month, the jobs used direct labor as shown below. Jobs 1 and 3 are not finished by the end of March, and Job 2 is finished but not sold by the end of March Job 3 $10,300 $4,200 $3,200 Job 1 Job 2 Direct labor used 1. Determine the amounts of direct materials, direct labor, and factory overhead applied that would be reported on job cost sheets for each of the three jobs for March JOB COST SHEET Job 1 Job 2 Job 3 2,300 Direct materials 5,800 7,800 Direct labor 10,300 4,200 3,200 Factory overhead 2,436 3,276 966 18,536 $ 15,276 6,466 Total 2. Determine the total dollar amount of Work in Process Inventory at the end of March. Ending work in process inventory 3. Determine the total dollar amount of Finished Goods Imventory at the end of March. Assume the company has no beginning Work in Process or Finished Goods inventories. Finished goods inventory

Answer 1

1
	Job 1	Job 2	Job 3
Direct materials	5800	7800	2300
Direct labor	10300	4200	3200
Factory Overhead	2436	3276	966
Total	18536	15276	6466
2
Ending work in Process inventory	25002	=18536+6466
3
Finished goods inventory	15276