31 38 Month of January 39 40 Selected information for January is presented below. Note that the applied overhead rate was 41 50% of direct labor costs in the molding department. 42 49 50 Molding Department 51 52 Goods in-process as of January 1 were 3,300 figurines at a cost of $60,720.00. Of this amount, $52,800.00 was from 53 raw materials added, $5,280.00 for labor and $2,640.00 for overhead. These 3,300 figurines were assumed to be 60 80.00% complete as to labor and overhead. 61 62 During January, 23,500 units were started, $381,405.00 of materials and $42,320.00 of labor costs were incurred. 63 64 The 7,500 figurines that were in-process at the end of January were assumed to be 60.00% complete to 71 labor and overhead. 72 73 All figurines in January passed inspection. 74 PART 5 Job Order Costing To keep records of the actual cost of a special order job, a Job Order Cost System has been developed. Overhead is applied at the rate of 50% of the direct labor cost. Job Order Costing Section On January 1, 20x2, Division S began Job 2407 for the Client, THE BIG CHILDREN STORE. The job called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan Purchased 4,150 Lamp Kits @ $16.65 per kit. 9-Jan 4,225 sets of Lamp Kits were requisitioned, including all those in the Beginning Inventory. 17-Jan Payroll of 640 Direct Labor Hours @ $9.85 per hour. 30-Jan Payroll of 690 Direct Labor Hours @ $10.10 per hour. 30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were used or scrapped, and are a cost of normal processing. Month End Overhead Information Actual Variable Manufacturing Overhead Actual Fixed Manufacturing Overhead Cost of Direct Material Incurred in Manufacturing Job 2407 Cost of Direct Labor Incurred in Manufacturing Job 2407 Cost of Manufacturing Overhead Applied to Job 2407 Cost of manufacturing one lamp $ 1,409.80 $ 41,373.45 Round to two places, $##.## {13.01} {13.02} {13.03} {13.04} 6 7 8 MOLDING 9 10 Physical Flow of Units 12 13 Work-in-Process - Beginning 14 Units Started this Period 15 Units to Account for 16 18 Total transferred out 19 Work-in-Process - Ending 20 Total Accounted for 21 22 24 25 26 27 28 Equivalent Units Material (Round to three places, ##.###.####) January 3,300 units {12.01} 23,500 units 26,800 units {12.02} 19,300 units {12.03} 7,500 units {12.04} 26,800 units {12.05} {12.06} 30 31 32 33 34 36 Equivalent Units Conversion (Round to three places, ##.###.###) {12.07} 37 38 39 40 42 43 44 45 Total cost in the Beginning Inventory (Round to two places, ###,###.##) {12.08} 46 48 49 50 51 52 54 Total cost of Material this period (Round to two places, ##.####.##) {12.09} 55 56 57 58 60 Total cost of Conversion this period (Round to two places, ###.###.###) {12.10} 61 62 63 64 65 Total cost to account for (Round to two places, ##.###.##) {12.11} 66 67 68 69 Cost per equivalent unit of Material this period (Round to seven places, ####.#######) {12.12} 70 71 72 73 74 Cost per equivalent unit of Conversion this period (Round to seven places, ###.#######) {12.13) 75 76 77 78 79 80 81 Cost of the units transferred, material and convesion (Round to two places, $######,###.## ` {12.14} 82 83 84 85 86 87 88 89 Cost of the ending inventory, material and convesion (Round to two places, $####,####.### {12.15} 90 91 92 Total Cost accounted for (Round to two places, $###,###.## ) {12.16} 93 94