Rockville, Inc. which uses a job costing system began business on January 1, 20X3 and applies manufacturing overhead on the basis of direct-labor cost. The following information relates to 20X3: Budgeted direct labor and manufacturing overhead were anticipated to be $200,000 and $250,000, respectively. Jobs number #1, #2, and #3 were begun during the year and had the following charges for direct material and direct labor:
Job number DM DL
#1...........................$145,000..........$35,000
#2.............................320,000............65,000
#3...............................55,000............80,000
Job #1 and #2 were completed and sold on account to customers at a profit of 60% of cost. Job #3 remained in production. Actual manufacturing overhead by year-end totaled $233,000. Rockville adjusts all under- and over-applied to cost of goods sold.
Required:
Compute Rockville's ending WIP inventory Compute Rockville's COG Manufactured Compute Rockville's income statement