Question

XLS 4-27 Job order costing (LO 5) E. Cain, Ltd. produces decorative lamps in sev styles and finishes. The company uses a job order costing system to accumulate product costs. Because much of the production process is automated, E. Cain, Ltd. has selected machine hours as its overhead application base. In April, E. Cain, Ltd. worked on four jobs. Jobs 78 and 79 were started in March and completed and delivered to customers in April. Tob 80 was started and finished in April, and at the end of April, the lamps from the job were in the warehouse. Job 81 was started but not completed at the end of April. 78 79 80 81 Costs Added in March Direct materials Direct labor Overhead Machine hours Costs Added in April Direct materials Direct labor Machine hours $25,000 $36,000 $40,000 1,600 MH $10,000 $ 4,000 $ 500 20 MH $ 8,000 120 MH $ 9,000 $28,000 500 MH $ 8,000 $12,000 325 MH $4,000 $ 500 45 MH Required a. Calculate the total manufacturing cost for April. b. Calculate the total cost of each of the four jobs as of the end of April. C. Calculate the balance in the Work in Process Inventory account at the end of March and the end of April. d. Calculate the cost of goods manufactured for April. e. Calculate the Cost of Goods Sold for April. 7. Calculate the Finished Goods Inventory balance at the end of April.

Overhead cost looks to be $25 per machine hour based on March's details

Answer 1

B C D E 78 79 80 F 81 total 1 2 Costs in added March 3 Direct Materials 4 Direct Labor 5 Overhead 6 total cost of March 25,000 36,000 40,000 1,01,000 10,000 4,000 500 14,500 35,000 40,000 40,500 1,15,500 7 8 cost added in April 9 Direct Materials 10 Direct Labor 11 Overhead 12 total cost added in April 13 total cost of job 0 9000 8000 8,000 28,000 12,000 3000 125008125 11,000 49,500 28,125 1,12,000 64,000 28,1250 4000 500 1125 5,625 5,625 21000 48500 24750 94,250 2,09,750| 14

15 16 a) 17 Total manufacturing cost 942501 18 b) 19 Job 78 Job 79 Job 80 Job 81 20 Total cost 1,12,000 64,000 28,125 5,625 21 c) March April 22 Work in process inventory 1,15,500 5,625 23 d) 24 Cost of goods manufactured for A 2,04,125| 25 e) 26 Cost of goods sold 1,76,000 27 f) 28 Finished goods inventory 28,125 29 30

B C D 78 79 80 81 total 25000 36000 40000 =B3+B4+B5 10000 4000 500 =C3+C4+C5 =B3+C3 =B4+C4 =B5+C5 =B6+C6 1 2 Costs in added March 3 Direct Materials 4. Direct Labor 5 Overhead 6 total cost of March 7 8 cost added in April 9 Direct Materials 10 Direct Labor 11 Overhead 12 total cost added in April 13 total cost of job 14 9000 8000 4000 I=SUM(B9:E9) 8000 28000 12000 500 =SUM(B10:E10) =120*25 =500*25 =325*25 =45*25 =SUM(B11:E11) =B9+B10+B11 =C9+C10+C11=D9+D10+D11=E9+E10+E11 =SUM(B12:E12) =B6+B12 =C6+C12 =D6+D12 =E6+E12 =SUM(B13:E13)

Job 80 =D13 Job 81 =E13 15 16 a) 17 Total manufacturing cost |=F12 18 b) 19 Job 78 20 Total cost =B13 21 c) March 22 Work in process inventory=F6 23 d) 24 Cost of goods manufacture=F13-E13 25 e) 26 Cost of goods sold =B13+C13 27 f) 28 Finished goods inventory =D13 Job 79 =C13 April =E13 30