Question

In: Accounting

Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost On April 1, Sangvikar Company had...

Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost

On April 1, Sangvikar Company had the following balances in its inventory accounts:

Materials Inventory $12,840
Work-in-Process Inventory 21,700
Finished Goods Inventory 8,720

Work-in-process inventory is made up of three jobs with the following costs:

Job 114 Job 115 Job 116
Direct materials $2,438 $2,621 $4,035
Direct labor 1,900 1,480 4,260
Applied overhead 1,235 962 2,769

During April, Sangvikar experienced the transactions listed below.

  1. Materials purchased on account, $29,320.
  2. Materials requisitioned: Job 114, $16,600; Job 115, $11,750; and Job 116, $4,600.
  3. Job tickets were collected and summarized: Job 114, 130 hours at $11 per hour; Job 115, 230 hours at $14 per hour; and Job 116, 70 hours at $19 per hour.
  4. Overhead is applied on the basis of direct labor cost.
  5. Actual overhead was $4,400.
  6. Job 115 was completed and transferred to the finished goods warehouse.
  7. Job 115 was shipped, and the customer was billed for 125 percent of the cost.

Required:

1. Calculate the predetermined overhead rate based on direct labor cost.

% of direct labor cost

2. Calculate the ending balance for each job as of April 30. When required, round your answers to the nearest dollar. Use your rounded answers in subsequent computations, if necessary.

Ending Balance
Job 114 $
Job 115 $
Job 116 $

3. Calculate the ending balance of Work in Process as of April 30. When required, round your answer to the nearest dollar.

$

4. Calculate the cost of goods sold for April. When required, round your answer to the nearest dollar.

$

5. Assuming that Sangvikar prices its jobs at cost plus 25 percent, calculate the price of the one job that was sold during April. When required, round your answer to the nearest dollar.

Solutions

Expert Solution


Related Solutions

Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost On April 1, Sangvikar Company had...
Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost On April 1, Sangvikar Company had the following balances in its inventory accounts: Materials Inventory $12,590 Work-in-Process Inventory 21,170 Finished Goods Inventory 8,750 Work-in-process inventory is made up of three jobs with the following costs: Job 114 Job 115 Job 116 Direct materials $2,386 $2,655 $3,175 Direct labor 1,740 1,660 4,220 Applied overhead 1,218 1,162 2,954 During April, Sangvikar experienced the transactions listed below. Materials purchased on account, $28,590. Materials...
Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost On April 1, Sangvikar Company had...
Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost On April 1, Sangvikar Company had the following balances in its inventory accounts: Materials Inventory $12,790 Work-in-Process Inventory 21,150 Finished Goods Inventory 8,840 Work-in-process inventory is made up of three jobs with the following costs: Job 114 Job 115 Job 116 Direct materials $2,390   $2,698 $3,870 Direct labor 1,740 1,540 4,340 Applied overhead 1,044 924 2,604 During April, Sangvikar experienced the transactions listed below. a. Materials purchased on account, $28,850....
Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost On April 1, Sangvikar Company had...
Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost On April 1, Sangvikar Company had the following balances in its inventory accounts: Materials Inventory $12,840 Work-in-Process Inventory 21,060 Finished Goods Inventory 8,670 Work-in-process inventory is made up of three jobs with the following costs: Job 114 Job 115 Job 116 Direct materials $2,432 $2,669 $3,383 Direct labor 1,900 1,560 4,400 Applied overhead 1,140 936 2,640 During April, Sangvikar experienced the transactions listed below. Materials purchased on account, $28,650. Materials...
Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost On April 1, Sangvikar Company had...
Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost On April 1, Sangvikar Company had the following balances in its inventory accounts: Materials Inventory $12,900 Work-in-Process Inventory 21,170 Finished Goods Inventory 8,720 Work-in-process inventory is made up of three jobs with the following costs: Job 114 Job 115 Job 116 Direct materials $2,406 $2,660 $3,320 Direct labor 1,780 1,540 4,200 Applied overhead 1,246 1,078 2,940 During April, Sangvikar experienced the transactions listed below. Materials purchased on account, $28,640. Materials...
Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost On April 1, Sangvikar Company had...
Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost On April 1, Sangvikar Company had the following balances in its inventory accounts: Materials Inventory $12,550 Work-in-Process Inventory 21,340 Finished Goods Inventory 8,900 Work-in-process inventory is made up of three jobs with the following costs: Job 114 Job 115 Job 116 Direct materials $2,436 $2,660 $4,484 Direct labor 1,860 1,480 4,500 Applied overhead 930 740 2,250 During April, Sangvikar experienced the transactions listed below. Materials purchased on account, $28,670. Materials...
Exercise 5.12 (Algorithmic) Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost On April 1,...
Exercise 5.12 (Algorithmic) Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost On April 1, Sangvikar Company had the following balances in its inventory accounts: Materials Inventory $12,820 Work-in-Process Inventory 21,380 Finished Goods Inventory 8,710 Work-in-process inventory is made up of three jobs with the following costs: Job 114 Job 115 Job 116 Direct materials $2,436 $2,695 $5,058 Direct labor 1,780 1,420 4,020 Applied overhead 979 781 2,211 During April, Sangvikar experienced the transactions listed below. Materials purchased on...
Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost, Unit Cost On August 1, Cairle...
Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost, Unit Cost On August 1, Cairle Company’s work-in-process inventory consisted of three jobs with the following costs: Job 70 Job 71 Job 72 Direct materials $1,700 $2,000 $850 Direct labor 1,900 1,200 900 Applied overhead 1,520 960 720 During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows: Job 70 Job 71 Job 72 Job 73 Job 74 Job...
Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost, Unit Cost On August 1, Cairle...
Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost, Unit Cost On August 1, Cairle Company’s work-in-process inventory consisted of three jobs with the following costs: Job 70 Job 71 Job 72 Direct materials $1,700 $2,000 $850 Direct labor 1,900 1,400 900 Applied overhead 1,330 980 630 During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows: Job 70 Job 71 Job 72 Job 73 Job 74 Job...
Income Statement Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost, Unit Cost On August...
Income Statement Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost, Unit Cost On August 1, Cairle Company’s work-in-process inventory consisted of three jobs with the following costs: Job 70 Job 71 Job 72 Direct materials $1,500 $2,000 $850 Direct labor 1,900 1,300 900 Applied overhead 1,520 1,040 720 During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows: Job 70 Job 71 Job 72 Job 73 Job...
Job Cost Flows, Journal Entries On April 1, Sangvikar Company had the following balances in its...
Job Cost Flows, Journal Entries On April 1, Sangvikar Company had the following balances in its inventory accounts: Materials Inventory $12,760 Work-in-Process Inventory 21,350 Finished Goods Inventory 8,600 Work-in-process inventory is made up of three jobs with the following costs: Job 114 Job 115 Job 116 Direct materials $2,804 $2,640 $3,650 Direct labor 1,800 1,560 4,300 Applied overhead 1,080 936 2,580 During April, Sangvikar experienced the transactions listed below. Materials purchased on account, $30,000. Materials requisitioned: Job 114, $16,500; Job...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT