Question

BJenkins 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 April, but not sold. Job C was started during April, but not completed. The job cost sheets revealed the following costs for April:

	Job A			Job B			Job C
Cost of Jobs in Process, 4/1/2016	$	12,400		$	1,100		$	—
Direct Materials Used		2,400			8,800			10,200
Direct Labor		10,800			8,800			3,400
Applied Manufacturing Overhead		?			?			?

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

			Job A	Job B	Job C
	Cost of Jobs in Process, 4/1/2016		12400	1100	-
	Direct Materials Used		2400	8800	10200
	Direct Labor		10800	8800	3400
	Applied Manufacturing Overhead
	(Note:1)		8100	6600	2550
	Notes:
	1			Job A	Job B	Job C
	Direct Labor		a	10800	8800	3400
	direct labor rate		b	20	20	20
	Direct Labor hours		c=a/b	540	440	170
	predetermined overhead rate		d	15	15	15
	Applied Manufacturing Overhead		e=c*d	8100	6600	2550
a)	Work-in-process
			Job A	Job B	Job C
	Beginning balance		12400	1100
	Direct Materials Used		2400	8800	10200
	Direct Labor		10800	8800	3400
	Applied Manufacturing Overhead		8100	6600	2550
			33700	25300	16150
	Less:Jobs completed		33700	25300	0
			0	0	16150
	Balance in work-in-process=$16150
b)	Finished goods
			Job A	Job B
	Jobs completed		33700	25300
	Less: Job sold		33700	0
			0	25300
	Balance in finished goods=$ 25300.
c)	Balance in cost of goods sold=Cost of Job Sold=Cost of Job A=$ 33700