Question

If someone could solve this and explain how they did so that would be great.

I solved some of it and it was marked mostly incorrect.

Thanks,

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Applying Overhead to Jobs, Costing Jobs

Gorman Company builds internal conveyor equipment to client specifications. On October 1, Job 877 was in process with a cost of $18,690 to date.

During October, Jobs 878, 879, and 880 were started. Data on costs added during October for all jobs are as follows:

	Job 877	Job 878	Job 879	Job 880
Direct materials	$14,380	$5,970	$3,510	$1,770
Direct labor	14,600	8,500	2,200	2,400

Overhead is applied to production at the rate of 75% of direct labor cost. Job 877 was completed on October 28, and the client was billed at cost plus 50%. All other jobs remained in process.

	Required:
1.	Prepare a brief job-order cost sheet showing the October 1 balances of all four jobs, plus the direct materials and direct labor costs during October. There is no need to calculate applied overhead at this point or to total the costs.
2.	Calculate the overhead applied to each job during October.
3.	Calculate the balance in Work in Process on October 31.
4.	What is the price of Job 877?

Answer 1

Req 1.
Brief of Job Cost:
			877	878	879	880
Beginning balance of Cost			18690
AddL Current Manufacturing Cost
Material			14380	5970	3510	1770
Labour			14600	8500	2200	2400
Req 2.
OH applied:
			877	878	879	880
Direct Labor cost			14600	8500	2200	2400
Multiply: OH rate as % of DLC			75%	75%	75%	75%
Overheads applied			10950	6375	1650	1800
Req 3.
JOB COST SHEET
			877	878	879	880
Beginning balance of Cost			18690
Add; Current Manufacturing Cost
Material			14380	5970	3510	1770
Labour			14600	8500	2200	2400
Overheads applied			10950	6375	1650	1800
Total Current Manufacturing Cost			39930	20845	7360	5970
Total Cost of Jobs			58620	20845	7360	5970
Status			Sold	In process	In process	In process
Balance of WIP in Oct -31:
Job 878			20845
Job 879			7360
Job 880			5970
Balance of WIP in Oct -31:			34175
Req 4.
Price of Job 877
Cost of Job 877			58620
Add: Markup @50%			29310
Price of Job 877			87930