norma~ full eosting Ralph's Shop manufaetures custom equipment. Eaeh customer's problem is unique, and Ralph uses job order eosting to help keep traek of the profitability of eaeh job or eustomer. Normal, full eosting is used. Overhead is applied to jobs at the rate of 110% of direet labor eost pius 18% of direet material eost.

During a reeent period, Ralph' s Shop had no be ginning work in process. Three jobs were started, named A, B and C. Job e was partially eomplete at the end of period, though jobs A and B were eompleted and delivered to their respeetive customers. The accounting system reeorded the following direet produet eosts during the period.

job A job B job e direet material $15,000 $39,000 $18,000 direct labor $42,000 $80,000 $65,000 In addition, manufaeturing overhead totaled $216,000. Finally, the job A and job B customers were eaeh billed $250,000; and Ralph's Shop ineurred a total of $68,000 in period eosts during the period.

Determine (i) the eost of job A and the eost of job B; (ii) the ending work-inproeess balanee; (iii) the under or over-absorbed overhead for the period; and (iv)

the period's income.

AppendixLO1