3. Mandys Makeovers produces antique reproduction furniture and uses a job order cost system The table below provides data on the tree jobs worked on in the companys first month of operations, March 2000.

	Job 101	Job 102	Job 103
Units of product on the job	40	20	15
Direct labor hours worked	500	300	90
Direct materials cost	$6,500	$2,700	$1,400
Direct labor cost	$5,000	$2,500	$890

Factory overhead cost is applied to job orders on the basis of direct labor hours at a predetermined rate of $9 per hour. Jobs 101 and 102 were completed during the month, and Job 103 remained in work in process at the end of the month.

Instructions:

A. Compute the overhead to be applied to each job.

Job 101 40 X 9= 4500

Job 102

Job 103 90x9= 810

B Compute the total cost of each job.

DM DL FO Tot

No. Job 101: 6,500 5000 4500 16,000

No. Job102 2700 2500 2700 7900

No.Job 103 1400 890 810 3100

C. Compute the cost transferred to finished goods during the month and prepare the proper journal entry.

	General Journal
		Post
Date	Description	Ref.	Debit	Credit
Not		Not
Required	Direct Materials	Required	10600
	Direct Labor		8390
	Factory overhead		8010
	Jobs completed101-102		23,900

.

D. Compute the total ending work in process inventory.