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 $$18,710$ 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 $$14,420$ $$6,030$ $$3,530$ $$1,780$

Direct labor $15,2008,6002,2002,500$

Overhead is applied to production at the rate of $70\%$ 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:

Question Content Area

$1.$ 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 $2$c$3$e$7$a$000043$fb$9\_1$

$fill in the blank $2$c$3$e$7$a$000043$fb$9\_2$

$fill in the blank $2$c$3$e$7$a$000043$fb$9\_3$

$fill in the blank $2$c$3$e$7$a$000043$fb$9\_4$

Direct materials fill in the blank $2$c$3$e$7$a$000043$fb$9\_5$

fill in the blank $2$c$3$e$7$a$000043$fb$9\_6$

fill in the blank $2$c$3$e$7$a$000043$fb$9\_7$

fill in the blank $2$c$3$e$7$a$000043$fb$9\_8$

Direct labor fill in the blank $2$c$3$e$7$a$000043$fb$9\_9$

fill in the blank $2$c$3$e$7$a$000043$fb$9\_10$

fill in the blank $2$c$3$e$7$a$000043$fb$9\_11$

fill in the blank $2$c$3$e$7$a$000043$fb$9\_12$

Question Content Area

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

The overhead applied to Job $877$ is $fill in the blank $89308$c$04305200$c$\_1$

$.$

The overhead applied to Job $878$ is $fill in the blank $89308$c$04305200$c$\_2$

$.$

The overhead applied to Job $879$ is $fill in the blank $89308$c$04305200$c$\_3$

$.$

The overhead applied to Job $880$ is $fill in the blank $89308$c$04305200$c$\_4$

$.$

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

The balance in Work in Process for Job $878$ is $fill in the blank $89308$c$04305200$c$\_5$

$.$

The balance in Work in Process for Job $879$ is $fill in the blank $89308$c$04305200$c$\_6$

$.$

The balance in Work in Process for Job $880$ is $fill in the blank $89308$c$04305200$c$\_7$

$.$

The total balance in Work in Process is $fill in the blank $89308$c$04305200$c$\_8$

$.$

$4.$ What is the price of Job $877?$

The price of Job $877$ is $fill in the blank $89308$c$04305200$c$\_9$

$.$