At the beginning of March, Aranda Company had two jobs in process, Job 86 and Job 87, with the following accumulated cost information:

During March, two more jobs (88 and 89) were started. The following direct materials and direct labor costs were added to the four jobs during the month of March:

At the end of March, Jobs 86, 87, and 89 were completed. Jobs 86 and 87 were sold. On March 1, the balance in Finished Goods was zero.

Required:
1. Calculate the plantwide overhead rate based on direct labor cost. (Note: Round to three decimal places.)
2. Prepare a brief job-order cost sheet for the four jobs. Show the balance as of March 1 as well as direct materials and direct labor added in March. Apply overhead to the four jobs for the Since the predetermined overhead rate is not given, it must be calculated from BWIP amounts using either Job 86 or Job 87. Using Job 86,month of March and show the ending balances.
3. Calculate the ending balances of Work in Process and Finished Goods as of March 31.
4. Calculate the Cost of Goods Sold for March.

Transcribed Image Text:

Direct materials Direct labor Applied overhead Balance, March 1 Job 86 $ 5,100 2,500 3,000 $10,600 Job 87 $ 5,000 4,600 5,520 $15,120