Question

Prepare Job-Order Cost Sheets, Predetermined Overhead Rate, Ending Balance of WIP, Finished Goods, and COGS At the beginning of June, Rhone Company had two jobs in process, Job 44 and Job 45, with the following accumulated cost information: Job 44 Job 45 Direct materials $5,100 $1,500 Direct labor 1,200 3,000 Applied overhead 780 1.950 Balance, June 1 $7,080 $6,450 During June, two more jobs (46 and 47) were started. The following direct materials and direct labor costs were added to the four jobs during the month of June: Job 44 Job 45 Job 46 Job 47 Direct materials $2,500 $7,110 $1,800 $1,700 Direct labor 800 6,400 900 560 At the end of June, Jobs 44, 45, and 47 were completed. Only Job 45 was sold. On June 1, the balance in Finished Goods was zero.

Answer 1

1) Overhead rate = 780/1200 = 65%

2) Job Cost sheet

	Job 44	Job 45	Job 46	Job 47
Beginning balance	7080	6450
Direct material	2500	7110	1800	1700
Direct labor	800	6400	900	560
Overhead	520	4160	585	364
Total	10900	24120	3285	2624

3) Work in process = Job 46 = $3285

Finished goods = 10900+2624 = 13524

4) Cost of goods sold = 24120