Question

Assume that the management of H. S. Job, Inc.calculated an estimated overhead application rate of $5 per direct labor hour.

At the beginning of the year one job was on hand.  Job #678 had accumulated 200 kilogram of materials at $2 per kilograms and 100 hours of direct labor at $12 per hour.

During the year Job #678 was completed and Jobs #679, 680, and #681 were started.  Job #678 and #679 were delivered to their respective customers, while Job #681 had not yet been completed.

Actual overhead for the period was $11,500.  Any over or under applied overhead is charged to cost of goods sold for the period.

The following job cards were available at the end of the year.

Required:          Calculate the following amounts for May.

                        Work-in-Process: May 1

                        Work-in-Process: May 31

                        Finished Goods: May 31

                        Cost of Goods manufactured: May

                        Adjusted Cost of Goods Sold: May

Job # 678 April                            Direct Material           200 kilograms at $2 per kilogram April                            Direct Labor                100 hours at $12 per hours April                            Machine Time               50 hours May                             Direct Material           200 kilograms at $2 per kilogram May                             Direct Labor                700 hours at $12 per hours May                             Machine Time             200 hours

	Job # 679 May                             Direct Material           225 kilograms at $2 per kilogram May                             Direct Labor                900 hours at $12 per hours May                             Machine Time             300 hours
	Job # 680 May                             Direct Material           150 kilograms at $2 per kilogram May                             Direct Labor                600 hours at $12 per hours May                             Machine Time             200 hours
	Job # 681 May                             Direct Material             50 kilograms at $2 per kilogram May                             Direct Labor                  75 hours at $12 per hours May                             Machine Time               25 hours

Answer 1