Blossom Assemblers uses normal job-order costing to assign costs to products. The company assembles and packages 25 different products according to customer specifications. Products are worked on in batches of 20 to 40 units. Each batch is given a job number. On October 1, the company had the following balances: Raw materials $9,900 Work in process Finished goods 66,517 30,950 Work in process consisted of the following jobs: Job 22 Job 25 Job 24 $5,240 $6,260 $4,850 Direct materials Direct labour 10.610 9,300 9,600 Applied overhead 7,427 6,510 6,720 Total $24.297 21.050 $21,170 Number of units 20 40 30 Finished goods consisted of Job 23, with the following costs: Job 23 Direct materials $8,280 13,330 Direct labour Applied overhead 9,330 Total $30,940 Number of units 50 Shown below are the direct cost data related to jobs started in October: Job 26 Job 27 Job 28 Total $5,660 $4,240 $15,130 Direct materials Direct labour Number of units $5,230 $11,310 $9,430 $5.970 $26,710 20 30 20 Calculate the predetermined overhead rate used by Blossom to apply overhead to jobs. Predetermined overhead rate 96 Calculate the unit cost of Job No. 24 in October. (Round answer to 2 decimal places, eg. 52.75.) Unit cost of Job No.24 $ Calculate the October 31 balances for the following inventory accounts. 1. Raw Materials 2. Work in Process $ 3. Finished Goods $ $ What is the cost of goods manufactured in October? Cost of goods manufactured $ Determine the under-or over-applied overhead for October. $ Prepare the journal entry to dispose of this amount. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Other information: 1. Direct materials and direct labour added to beginning work in process in October were as follows: Job 22 Job 24 Job 25 Total Direct materials $1,160 $620 $1,520 $3,300 Direct labour 3,030 4,550 5,560 13,140 Overhead is applied at a predetermined rate based on the direct labour cost. Actual expenses for October were as follows: 2. 3. $2,120 8,590 Supervisory salaries Factory rent Depreciation (machines) Indirect labour $6,060 Supplies (factory) 5,050 Selling expenses 5.050 Property tax and insurance 4,040 CPP, El, and other benefits 2.270 4.240 4. * 80% of employer contributions and benefits relate to factory personnel. Purchases of direct materials (raw materials) during October amounted to $28,790. Indirect materials (supplies) are handled in a separate account Only Jobs 27 and 28 are still in process at closing on October 31. Finished goods consisted only of Job No. 25 at month end. Blossom writes off any under- and over-applied overhead to Cost of Goods Sold in the month in which it is incurred. 5. 6
