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ABC Company began operations during 2022 and employs a job-order costing system with departmental overhead rates . Overhead from both Department A and Department B
ABC Company began operations during 2022 and employs a job-order costing system with departmental overhead rates. Overhead from both Department A and Department B is assigned to jobs on the basis of direct labor hours. Below is a summary of events and transactions that occurred during 2022: a. ABC Company had the following estimates for 2022: Dept. A Dept. B Total Overhead cost $136,500 $192,000 $328,500 Direct labor hours 14,000 16,000 30,000 b. ABC Company began work on three jobs. Information about these three jobs appears below: Job #1 Job #2 Job #3 Direct materials used $ 71,400 $122,000 $103,000 Direct labor cost $117,600 $ 93,600 $100,800 DL hours in Dept. A 5,200 3,600 3,200 DL hours in Dept. B 4,600 4,200 5,200 c. Job #1 and Job #3 were completed during 2022. Job #2 was not completed. In addition, Job #1 was sold during 2022 whereas Job #3 was not sold. d. When Job #1 was sold to the customer, ABC Company charged the customer 150% of the total cost to manufacture Job #1. Calculate ABC Company's work in process inventory balance at December 31, 2022.
Calculate the total selling price charged to the customer for Job #1.
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