Applying Overhead to Jobs, Costing Jobs

Gorman Company builds internal conveyor equipment to client specifications. On October 1, Job 877 was in process with a cost of $18,650 to date.

During October, Jobs 878, 879, and 880 were started. Data on costs added during October for all jobs are as follows:

	Job 877	Job 878	Job 879	Job 880
Direct materials	$14,390	$6,000	$3,560	$1,880
Direct labor	15,000	8,900	1,700	2,200

Overhead is applied to production at the rate of 65% of direct labor cost. Job 877 was completed on October 28, and the client was billed at cost plus 50%. All other jobs remained in process.

Required:

1. Prepare a brief job-order cost sheet showing the October 1 balances of all four jobs, plus the direct materials and direct labor costs during October. There is no need to calculate applied overhead at this point or to total the costs. All amount cells must have an entry; enter zeros as needed.

Gorman Company
Job-Order Cost Sheets
For the Month of October
	Job 877	Job 878	Job 879	Job 880
Beginning balance	$fill in the blank 537a3901eff1066_1	$fill in the blank 537a3901eff1066_2	$fill in the blank 537a3901eff1066_3	$fill in the blank 537a3901eff1066_4
Direct materials	fill in the blank 537a3901eff1066_5	fill in the blank 537a3901eff1066_6	fill in the blank 537a3901eff1066_7	fill in the blank 537a3901eff1066_8
Direct labor	fill in the blank 537a3901eff1066_9	fill in the blank 537a3901eff1066_10	fill in the blank 537a3901eff1066_11	fill in the blank 537a3901eff1066_12

2. Calculate the overhead applied to each job during October.

The overhead applied to Job 877 is $fill in the blank 46910efc6fddfa8_1.

The overhead applied to Job 878 is $fill in the blank 46910efc6fddfa8_2.

The overhead applied to Job 879 is $fill in the blank 46910efc6fddfa8_3.

The overhead applied to Job 880 is $fill in the blank 46910efc6fddfa8_4.

3. Calculate the balance in Work in Process on October 31.

The balance in Work in Process for Job 878 is $fill in the blank 46910efc6fddfa8_5.

The balance in Work in Process for Job 879 is $fill in the blank 46910efc6fddfa8_6.

The balance in Work in Process for Job 880 is $fill in the blank 46910efc6fddfa8_7.

The total balance in Work in Process is $fill in the blank 46910efc6fddfa8_8.

4. What is the price of Job 877? The price of Job 877 is $fill in the blank 46910efc6fddfa8_9.