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A Red Fire Inc. produces fire trucks. The company uses a normal job-order costing system to calculate its cost manufactured. The company's policy is to

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A Red Fire Inc. produces fire trucks. The company uses a normal job-order costing system to calculate its cost manufactured. The company's policy is to price its job at cost plus 30% markup. On January 1, 2016, there was only lculate the under- or over-applied overheat or at bin process, with the following costs: Job 200 Direct materials $13,500 Direct labour 18,000 Applied overhead 27,000 Total $58,500 The following balances were taken from the general ledger of the company as of January 1, 2016: Direct materials inventory $45,000 Finished goods inventory (for Job 100) 585,000 ring the year 2016, the following events occurred: Direct materials were purchased on account for $375,000. Two more jobs were started: Job 300 and Job 400. Direct materials and direct labour costs incurred by each job is ocess during the year 2016 were as follows: Job 200 Job 300 Job 400 Direct materials $150,000 $45,000 $35,000 Direct labour $130,000 $45,000 $25.000 The company incurred the following actual factory overhead during the year: Factory rent $135,000 Factory supplies $ 55,500 Indirect labour D S 85,750 Jobs 200 and 300 were completed. Jobs 100 and 200 were sold Instructions (a) Calculate the total applied overhead for the year 2016. The factory overhead costs are applied to each job on the ben of direct labour dollars. (b) Prepare simple job-order cost sheets for jobs 200, 300, and 400 for the year ended December 31, 2016 (e) Determine whether the overhead is ever-applied or under-applied. By how much (d) Prepare a schedule of cost of goods sold, identifying both normal and adjusted cost of goods sold, for the years December 31, 2016 (el Calculate the selling price of Job 200 Calculate the endley balances as of December 31, 2016, for the following accounts: Direct Materials and Wako

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