Question
A company that uses job order costing reports the costs incurred below. Overhead is applied at the rate of 54% of direct materials cost. The
A company that uses job order costing reports the costs incurred below. Overhead is applied at the rate of 54% of direct materials cost. The company has no beginning Work in Process or Finished Goods inventories. Jobs 1 and 3 are not finished by the end of the month, and Job 2 is finished but not sold by month-end.
Job 1 | Job 2 | Job 3 | |
---|---|---|---|
Direct materials used | $ 6,100 | $ 8,100 | $ 2,600 |
Direct labor used | $ 9,800 | $ 4,200 | $ 3,200 |
1. Prepare job cost sheets that have direct materials, direct labor, and overhead applied for each of the three jobs for the month. 2. Determine the total dollar amount of Work in Process Inventory at the end of the month. 3. Determine the total dollar amount of Finished Goods Inventory at the end of the month.
Starr Company shows the following information for the month.
Raw materials purchased on credit | $ 79,000 | |
---|---|---|
Direct materials used | $ 55,600 | |
Direct labor used | $ 20,450 | |
Overhead rate | 125% | of direct labor cost |
Prepare journal entries to record the following. 1. Raw materials purchased. 2. Direct materials used. 3. Direct labor used. 4. Applied overhead.
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