Question
Dancer Corporation, which uses a job-costing system, had two jobs in process at the start of 2014: Job 59 $ 95,000 Job 60 $ 39,500
Dancer Corporation, which uses a job-costing system, had two jobs in process at the start of 2014:
Job 59 $ 95,000
Job 60 $ 39,500
WIP Inventory 1/1/14 $ 134,500
The company applies manufacturing overhead on the basis of machine hours. Budgeted overhead and machine activity for the year were anticipated to be $720,000 and 20,000 hours. The company worked on three jobs during the first quarter and incurred the following costs:
Job No./ Direct Material/ Direct Labor/ Machine Hours 59,/ $18,000/,$45,000 ,/900
60/ ---- /$25,000 /600
61/ $37,000/ $35,000 /1,200 Dancer completed Job 59 and Job 60 in the first quarter of 2014
a. [10 points] What is the firm's predetermined overhead rate?
b. [10 points] What is the cost of work-in-process inventory at the end of the quarter ?
c. [10 points] What is the cost of jobs completed during the first quarter ?
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