Question

9.09 points Jenkins Company uses a job order cost system with overhead applied to jobs on the basis of direct labor hours. The direct labor rate is $20 per hour, and the predetermined overhead rate is $15 per direct labor hour. The company worked on three jobs during April. Jobs A and B were in process at the beginning of April. Job A was completed and delivered to the customer. Job B was completed during Apri, but not sold. Job C was started during Apni, but not completed. The job cost sheets revealed the following costs for April: Job AJob Bob Cl 12,000$1,000ANS Cost of Jobs in Process, 4/1/2016 Direct Materials Used Direct Labor Applied Manufacturing Overhead 2,000 10,000 8,000 8,000 9,000 3,000 Required: If no other jobs were started, completed, or sold, determine the balance in each of the following accounts at the end of April: a. Work in Process b. Finished Goods C.|Cost of Goods Sold

Answer 1

calculation of manufacturing overhead

S.No.	Particulars	Job A	Job B	Job C
I	Total direct labor	$10000	$8000	$3000
II	Labor hours (I/20)	500	400	150
III	Total Manufacturing overhead ($15*II)	$7500	$6000	$2250

Total Cost incurred till April on each job

S. No.	Particulars	Job A	Job B	Job C
1	Cost at the beginning	12000	1000	-
2	Direct Material	2000	8000	9000
3	Direct Labor	10000	8000	3000
4	Manufacturing overhead	7500	6000	2250
5	Total cost (1+2+3+4)	31500	23000	14250

1. job A was completed and was delivered to the customer hence, the cost allocated to Job A will be transferred to cost of goods sold.
2. Job B was completed but was not sold so the cost allocated to job B will be transferred to finished goods account
3. Job C was not yet completed so the total cost will be transferred to work in process account

Cost allocated to each account

S.No.	Particulars	Amount
1	Work In Process	14250
2	Finished Goods	23000
3	Cost Of Goods Sold	31500