Question
Brillant Design Company makes custom chairs for individual customers. On October 1, there was one job in process, Job 243, with a cost of $1,300.
Brillant Design Company makes custom chairs for individual customers. On October 1, there was one job in process, Job 243, with a cost of $1,300. Jobs 244, 245, and 246 were started during the month of October. Data on costs added during the month are as follows:
Job 243 | Job 244 | Job 245 | Job 246 | |
Direct Materials | $8,400 | $2,300 | $5,550 | $9,200 |
Direct Labor | $3,100 | $980 | $2,200 | $5,010 |
Overhead is applied to production at the rate of 70% of direct labor cost. Job 245 was completed on October 14 and the client was billed at cost plus 55%. All other jobs remained in process. Refer to Figure 5-5.
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