Question

3. Direct labor rate is $20 per hour, and the pre det ermined overhead rate is so per direct laborhour. Jobs a and b were processed at the beginning of April. Job a was was completed and delivered to the customer Job B was completed during April, but not sold. Jobc was started during April, but hot completed. Job JobB Job cost of Jobs in process 4/1/2018/811,800 $1,000 s- Direct Materials used 1,800 7.600 8,400 Direct labor 9,600 7.600 2,800 Applied manufacturing overhead

Answer 1

Answer:

a. b. c. Work in process Finished Goods Cost of Goods sold $13,300 $21,900 $30,400

Working:

During April:

Job A:

Direct labor hours = 9600 / 20 = 480 DLH

Overhead applied = 480 * 15 = $7,200

Job B:

Direct labor hours = 7600 / 20 = 380 DLH

Overhead applied = 380 * 15 = $5,700

Job A:

Direct labor hours = 2800 / 20 = 140 DLH

Overhead applied = 140 * 15 = $2,100

So Cost of jobs in process 4/1/2018 Direct material used Direct labor Overhead applied Total cost Status Account Job A Job B Job C $11,800 $1,000 $1,800 $7,600 $8,400 $9,600 $7,600 $2,800 $7,200 $5,700 $2,100 $30,400 $21,900 $13,300 Sold Completed in process Cost of Goods sold Finished Goods Work in process