Arnold Company makes cabinets to customer order. Arnold applies overhead at the rate of 20% of direct labor cost. Jobs are marked up at 30% over cost. On July 1, Finished Goods inventory consisted of Job 68, costing $9,300. Work in Process inventory consisted of three jobs: Job 70 for $3,200, Job 71 for $1,400, and Job 72 for $700. During the month of July, Arnold worked on six jobs with the following direct materials and direct labor for the month: Job 70 Job 71 Job 72 Job 73 Job 74 Job 75 Direct materials $500 1,400 $1,200 2,800 $350 800 $1,700 3,000 $2,500 4,900 $150 300 Direct labor Jobs 70, 71, 73 and 74 were completed during July. Jobs 68, 70, 71 and 74 were sold. (All completed jobs are first transferred to Finished Goods, then to Cost of Goods Sold as they are sold.) Fill in the following job cost sheet and calculate the total cost by July 31 for each job. Job 70 Job 71 Job 72 Job 73 Job 74 Job 75 Beginning balance $ Direct materials Direct labor $500 1,400 $1,200 2,800 $350 800 $1,700 3,000 $2,500 $2,500 4,900 $150 300 Applied overhead Total, July 31 $ Enter the appropriate numbers to the correct T-accounts for Work-in-process, Finished Goods and Cost of Goods Sold for each of the following: (Hint: when entering amounts for a transaction that includes more than one job, enter them in order of the job number. That is, if a transaction included amounts for Jobs 70 and 72, the amount for Job 70 would be entered before the amount for Job 72.) a. Recognize the beginning balance of Work in Process and of Finished Goods. b. Recognize the use of total direct materials for production for July. C. Recognize the use of total direct labor for production for July. d. Recognize the application of overhead to production for July. e. Recognize the completion of each job finished in July. f. Transfer each sold job to COGS. g. Calculate the ending balances of: WIP, Finished Goods, and COGS. Work-in-Process (WIP) Finished Goods Cost of Goods Sold SEES SSSS (9) Sales revenue for Arnold in July is $ Use the Interactive Graph to answer the following questions: If direct labor added to Job 73 equaled $2,400, the ending balances of each of the following accounts would be affected in what way? Work in Process Finished Goods Cost of Goods Sold Sales Revenue If the overhead rate based on direct labor was 40%, the ending balances of each of the following accounts would be affected in what way? Work in Process Finished Goods Cost of Goods Sold Sales Revenue Job Order Costing Job 68 Job 70 Job 71 Job 72 Job 73 Job 74 Job 75 Work in Process Finished Goods Cost of Goods Sold Beginning Balance $9,300 $3,200 $1,400 $700 Beginning Balance 5,300 9,300 9,300 9,300 Direct Materials Direct Materials 6,400 5,380 5,380 5,380 $500 1,400 $1,200 2,800 $350 800 $1,700 3,000 $2,500 4,900 $150 300 Direct Labor Direct Labor 13,200 5,960 5,960 5,960 Overhead Rate Markup on Cost 0.2 0.3 Applied Overhead 2,640 5,300 8,3808,380 5,380 8,380 Job 68 Job 70 Job 71 Job 72 J ob 73 Job 74 Job 75 Sum 5,960 Beginning Balance $9,300 $3,200 $1,400 $700 0 0 0 $5,300 5,300 Direct Materials 500 1,200 350 1,700 2,500 6,400 150 300 Direct Labor 1,400 2,800 8,380 3,000 800 4,900 13,200 280 560 160 600 980 60 2,640 Bal., July 31 | 27,540 | 25,020 34,320 | 29,020 29,020 Applied Overhead Total, July 31 Completed/Sold? $2,010 $510 Ending Balance 2,520 5,300 $9,300 S $5,380 cas $5,960 c as $5,300 C $8,380 Cas Sales Markup 0.3 Sales Revenue $37,726 Arnold Company makes cabinets to customer order. Arnold applies overhead at the rate of 20% of direct labor cost. Jobs are marked up at 30% over cost. On July 1, Finished Goods inventory consisted of Job 68, costing $9,300. Work in Process inventory consisted of three jobs: Job 70 for $3,200, Job 71 for $1,400, and Job 72 for $700. During the month of July, Arnold worked on six jobs with the following direct materials and direct labor for the month: Job 70 Job 71 Job 72 Job 73 Job 74 Job 75 Direct materials $500 1,400 $1,200 2,800 $350 800 $1,700 3,000 $2,500 4,900 $150 300 Direct labor Jobs 70, 71, 73 and 74 were completed during July. Jobs 68, 70, 71 and 74 were sold. (All completed jobs are first transferred to Finished Goods, then to Cost of Goods Sold as they are sold.) Fill in the following job cost sheet and calculate the total cost by July 31 for each job. Job 70 Job 71 Job 72 Job 73 Job 74 Job 75 Beginning balance $ Direct materials Direct labor $500 1,400 $1,200 2,800 $350 800 $1,700 3,000 $2,500 $2,500 4,900 $150 300 Applied overhead Total, July 31 $ Enter the appropriate numbers to the correct T-accounts for Work-in-process, Finished Goods and Cost of Goods Sold for each of the following: (Hint: when entering amounts for a transaction that includes more than one job, enter them in order of the job number. That is, if a transaction included amounts for Jobs 70 and 72, the amount for Job 70 would be entered before the amount for Job 72.) a. Recognize the beginning balance of Work in Process and of Finished Goods. b. Recognize the use of total direct materials for production for July. C. Recognize the use of total direct labor for production for July. d. Recognize the application of overhead to production for July. e. Recognize the completion of each job finished in July. f. Transfer each sold job to COGS. g. Calculate the ending balances of: WIP, Finished Goods, and COGS. Work-in-Process (WIP) Finished Goods Cost of Goods Sold SEES SSSS (9) Sales revenue for Arnold in July is $ Use the Interactive Graph to answer the following questions: If direct labor added to Job 73 equaled $2,400, the ending balances of each of the following accounts would be affected in what way? Work in Process Finished Goods Cost of Goods Sold Sales Revenue If the overhead rate based on direct labor was 40%, the ending balances of each of the following accounts would be affected in what way? Work in Process Finished Goods Cost of Goods Sold Sales Revenue Job Order Costing Job 68 Job 70 Job 71 Job 72 Job 73 Job 74 Job 75 Work in Process Finished Goods Cost of Goods Sold Beginning Balance $9,300 $3,200 $1,400 $700 Beginning Balance 5,300 9,300 9,300 9,300 Direct Materials Direct Materials 6,400 5,380 5,380 5,380 $500 1,400 $1,200 2,800 $350 800 $1,700 3,000 $2,500 4,900 $150 300 Direct Labor Direct Labor 13,200 5,960 5,960 5,960 Overhead Rate Markup on Cost 0.2 0.3 Applied Overhead 2,640 5,300 8,3808,380 5,380 8,380 Job 68 Job 70 Job 71 Job 72 J ob 73 Job 74 Job 75 Sum 5,960 Beginning Balance $9,300 $3,200 $1,400 $700 0 0 0 $5,300 5,300 Direct Materials 500 1,200 350 1,700 2,500 6,400 150 300 Direct Labor 1,400 2,800 8,380 3,000 800 4,900 13,200 280 560 160 600 980 60 2,640 Bal., July 31 | 27,540 | 25,020 34,320 | 29,020 29,020 Applied Overhead Total, July 31 Completed/Sold? $2,010 $510 Ending Balance 2,520 5,300 $9,300 S $5,380 cas $5,960 c as $5,300 C $8,380 Cas Sales Markup 0.3 Sales Revenue $37,726