5-3 Applying Overhead to Jobs; Costing Jobs LO3 Costume making 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. La Salle applies over- head at the rate of $16 per direct labor hour. Direct labor is paid at an average of $10 per hour. During August, Jobs #216 and #217 were started. Data on August costs for all jobs are as follows: Job #214 Job #215 Job #216 Job #217 DM $2,200 $9,000 $1,500 $3,450 DL 1,800 4,000 150 800 180xl 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 overhead applied to each job during the month of August. 2. Prepare job-order cost sheets for each job as of the end of August. 3. Calculate the balance in Work in Process on August 31. (continued 4. What is the price of Job #214? 5. Do you suppose that LaSalle has a finished goods account? If so, what jobs would be added to that account? Applying Overhead to Jobs; Costing Jobs LO3 Perrine Company builds internal conveyor equipment to client specifications. On October 1, Jobs #876 and #878 were in process with the following costs: DM DL Applied OH October 1 balance Job #876 $ 5,720 8,000 6,800 $20,520 Job #878 $15,400 22,000 18,700 $56,100 October, Jobs #879 and #880 were started. Data on October costs for all jobs are as follows: DM Job #876 $13,960 13,800 Job #878 $ 7,000 10,000 Job #879 $ 350 1,500 Job #880 $4,800 4,000 DL Job #879 was completed on October 28, and the client was billed at cost plus 50 percent. All other jobs remained in process. Required 1. Calculate the overhead rate based on direct labor cost. 2. Calculate the overhead applied to each job during the month of October. 3. Prepare job-order cost sheets for each job as of the end of October. 4. Calculate the balance in Work in Process on October 31. 5. What is the price of Job #8797