Refer to Exercise 4-23. Job 214 was completed on August 22, and the client was billed at cost plus 30 percent. All other jobs remained in process.

Required:

1. Calculate the balance in Work in Process on August 31.

2. What is the price of Job 214 ?

Exercise 4-23.

LaSalle Inc. designs and builds sheds and outbuildings for individual customers. On August 1 , there were two jobs in process: Job 214 with a beginning balance of \(\$ 13,400\), and Job 215 with a beginning balance of \(\$ 9,670\). LaSalle applies overhead at the rate of \(\$ 16\) per direct labor hour. Direct labor wages average \(\$ 10\) per hour.
During August, Jobs 216 and 217 were started. Data on August costs for all jobs are as follows:

\begin{tabular}{lrrrr}& Job 214 & Job 215 & Job 216 & Job 217 \\\hline Direct materials & \(\$ 2,200\) & \(\$ 9,000\) & \(\$ 1,500\) & \(\$ 3,450\) \\
Direct labor cost & 1,800 & 4,000 & 150 & 800 \end{tabular}
Required:
1. Calculate the number of direct labor hours that were worked on each job in August.
2. Calculate the overhead applied to each job during the month of August.
3. Prepare job-order cost sheets for each job as of the end of August.

Transcribed Image Text:

Job 214 Job 215 Job 216 Job 217 Direct materials Direct labor cost $2,200 1,800 $9,000 4,000 $1,500 150 $3,450 800