Question

Johnson Company uses a job-order costing system and started the month of March with three jobs in process. The cost of beginning work in process plus the costs added during March are shown below: Job #1 Job #2 Job #3 beginning work in process ..... $4,930 $4,970 $2,840 COSTS ADDED DURING MARCH: direct materials .............. $3,400 $4,200 $4,600 direct labor .................. $5,000 $4,000 ? Johnson applies overhead to jobs based on a percentage of direct materials used. During March, Johnson completed both Job #2 and Job #3. Job #1 was not completed by the end of March. Job #2 consisted of 1,700 units; some of these units were sold during March. None of the units from Job #3 were sold in March. Johnson Company's accounting records for March disclosed the following information: Work in process inventory balance at March 31 .......... $15,880 Actual overhead cost for the month of March ............ $ 8,500 Cost of goods sold for March ........................... $11,830 Finished goods inventory balance at March 31 ........... $18,870 The cost of goods sold number above represents the cost of goods sold for March after the overhead variance has been closed for March. Calculate the direct labor cost added during March for Job #3.

Answer 1

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