Prepare Job-Order Cost Sheets, Predetermined Overhead Rate, Ending Balance of WIP, Finished Goods, and COGS At...

Prepare Job-Order Cost Sheets, Predetermined Overhead Rate, Ending Balance of WIP, Finished Goods, and COGS

At the beginning of June, Donewell Company had two jobs in process, Job 44 and Job 45, with the following accumulated cost information:

	Job 44	Job 45
Direct materials	$4,800	$1,900
Direct labour	4,200	3,360
Applied overhead	2,400	1,920
Balance, June 1	$11,400	$7,180

During June, two more jobs (46 and 47) were started. The following direct materials and direct labour 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 labour	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.

Required:

1. Calculate the overhead rate based on direct labour cost. Round the percentage to the nearest whole number. For example, .6372 would be rounded to 64%.
%

2. Prepare a brief job-order cost sheet for the four jobs. Show the balance as of June 1 as well as direct materials and direct labour added in June. Apply overhead to the four jobs for the month of June, and show the ending balances. Round your answers to the nearest whole dollar. For those boxes in which no entry is required, enter "0".

Donewell Company
Job-Order Cost Sheet
For the Month of June
	Job 44	Job 45	Job 46	Job 47
Beginning balance, June 1	$	$	$	$
Direct materials
Direct labour
Applied overhead
Total, June 30	$	$	$	$

3. Calculate the ending balances of Work in Process and Finished Goods as of June 30. Round your answers to the nearest dollar.

Work in process	$
Finished goods	$

4. Calculate the Cost of Goods Sold for June. Round your answer to the nearest dollar.
$

Solutions

Expert Solution

1. Calculate the overhead rate based on direct labour cost. Round the percentage to the nearest whole number. For example, .6372 would be rounded to 64%.
2400/4000 = 60%

Donewell Company
Job-Order Cost Sheet
For the Month of June
	Job 44	Job 45	Job 46	Job 47
Beginning balance, June 1	$11400	$7180	$	$
Direct materials	2500	7110	1800	1700
Direct labour	800	6400	900	560
Applied overhead	480	3840	540	392
Total, June 30	$15180	$24530	$3240	$2652

3. Calculate the ending balances of Work in Process and Finished Goods as of June 30. Round your answers to the nearest dollar.

Work in process	$3240
Finished goods	$15180+2652 = 17832

4. Calculate the Cost of Goods Sold for June. Round your answer to the nearest dollar.
$24530

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Job-Order Cost Sheets, Balance in Work in Process and Finished Goods Prull Company, a job-order costing...

Job-Order Cost Sheets, Balance in Work in Process and Finished Goods Prull Company, a job-order costing firm, worked on three jobs in July. Data are as follows: Job 86 Job 87 Job 88 Balance, July 1 $21,370 $6,280 $0 Direct materials $10,510 $12,350 $16,190 Direct labor $16,040 $12,240 $24,030 Machine hours 500 290 980 Overhead is applied to jobs at the rate of $17 per machine hour. By July 31, Jobs 86 and 88 were completed. Jobs 82 and 86...

Problem #4 Predetermined Overhead Rate Broadway Corporation uses job order costing with a predetermined overhead rate...

Problem #4 Predetermined Overhead Rate Broadway Corporation uses job order costing with a predetermined overhead rate based on machine hours to apply overhead. The following costs were provided after Job 500 & 510 were complete. Given Estimated Annual Data: Machine Hours 55,000 DL rate/hour $8 Unit Overhead 345,000 Support labor (4,000 hours) 17,000 Facility Overhead 150,000 Supervisor Salaries 36,000 Total Overhead 495,000 Beginning Inventory Raw Materials and Supplies $10,500 Work in Process (Job 500 only) 54,000 Finished Goods 112,500 Purchases...

Predetermined Factory Overhead Rate Novus Engine Shop uses a job order cost system to determine the...

Predetermined Factory Overhead Rate Novus Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: Engine parts $1,257,500 Shop direct labor 550,000 Shop and repair equipment depreciation 91,000 Shop supervisor salaries 250,000 Shop property taxs 40,000 Shop supplies 15,000 Advertising expense 75,000 Administrative office salaries 175,000 Administrative office depreciation expense 12,500 Total costs and expenses $2,466,000 The average shop direct labor rate...

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...

Predetermined Factory Overhead Rate Spring Street Engine Shop uses a job order cost system to determine...

Predetermined Factory Overhead Rate Spring Street Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: Engine parts $1,644,000 Shop direct labor 1,200,000 Shop and repair equipment depreciation 72,900 Shop supervisor salaries 202,800 Shop property tax 36,800 Shop supplies 28,300 Advertising expense 32,900 Administrative office salaries 141,400 Administrative office depreciation expense 18,100 Total costs and expenses $3,377,200 The average shop direct labor...

The Savage Garden Company uses normal costing in its job-order cost system. The predetermined overhead rate...

The Savage Garden Company uses normal costing in its job-order cost system. The predetermined overhead rate is 3 times the direct labor cost. Job 70 was completed during 2019. This job was charged $4,000 for direct materials, $2,000 for direct labor, and $6,000 for allocated overhead. The job consisted of 10 units. After the job was completed, but before it was sent to Finished Goods, it was determined that 2 of these units were spoiled. If the 2 bad units...

Predetermined Factory Overhead Rate Street Runner Engine Shop uses a job order cost system to determine...

Predetermined Factory Overhead Rate Street Runner Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: Engine parts $740,000 Shop direct labor 500,000 Shop and repair equipment depreciation 40,000 Shop supervisor salaries 133,000 Shop property taxes 22,000 Shop supplies 10,000 Advertising expense 20,000 Administrative office salaries 71,400 Administrative office depreciation expense 6,000 Total costs and expenses $1,542,400 The average shop direct labor...

Prepare entries in a job order cost system and job cost sheets. Lott Company uses a...

Prepare entries in a job order cost system and job cost sheets. Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,000, direct labor $12,000, and manufacturing overhead $16,000. As of January 1, Job 49 had been completed at a cost of...

Subjects