Question

Glass Company makes glass orders based on the customer specifications, so the company uses job costing to track costs.

1. The company uses direct labor hours as the cost driver for manufacturing overhead application.

The company estimated the following manufacturing overhead costs for the year:

$600,000

The company estimated the following usage of direct-labor hours for the year:

200,000

2. Beginning Work-in-process, March 1 (Job 57)

$108,000

3. Beginning Finished Goods, March 1 (Job 55)

$125,000

2. Labor Information for March:

Direct-labor hours:

Job 57

7,000

Job 58

6,000

Job 59

4,000

Labor costs:

Direct-labor wages

$408,000

Indirect-labor wages

$30,000

Supervisory salaries

$12,000

3. Material Information for March:

Raw Materials, Inventory, March 1

$21,000

Purchase or raw material

$210,000

Direct materials requisitioned:

Job 57

$90,000

Job 58

$75,000

Job 59

$51,000

4. Other costs incurred in March:

Factory Utilities

$12,000

Sales offices Utilities

$3,200

Administrative offices Utilities

$2,000

Factory equipment repair and maintenance costs

$11,200

Depreciation on factory equipment

$5,000

Manufacturing supplies purchased and used

$24,000

5. During March the following jobs were completed and sold for the following sales price:

Job 57

$400,000

Job 58

$250,000

Required:

You need to use cell references to provide answers and calculations.

1. Develop the predetermined overhead rate.

2. Complete the job cost sheets provided below for the month of March:

Job 57

Job 58

Job 59

Beginning Balance

Current costs:

Direct materials

Direct Labor

Applied overhead

Total

3. Determine the ending Work-In-Process Inventory at the end of March and provide the number of the Job(s) still in Work-in-Process at the end of March and the determine total cost of ending work in process for March.

4. Determine the ending Finished Goods for March and provide the number of the Job(s) in Finished Goods at the end of March and determine the total cost of ending finished goods for March.

5. Determine the Cost of Goods Sold for March and provide the number of the Job(s) in Cost of Goods Sold for March and determine the total cost of goods sold for March.

Answer 1