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Hv7ku Company uses a job-order costing system and applies overhead costs to jobs using a pre-determined overhead rate of 75% of direct materials cost .
Hv7ku Company uses a job-order costing system and applies overhead costs to jobs using a pre-determined overhead rate of 75% of direct materials cost. Hv7ku Company began work on four jobs during June. Information related to the four jobs appears below: Job B-7a Job F-8n COSTS ADDED DURING JUNE direct materials .............. $1,200 $1,800 direct labor .................. $2,500 $2,670 Job J-9q Job Y-6c COSTS ADDED DURING JUNE direct materials .............. $2,600 $2,000 direct labor .................. $3,590 $2,500 By the end of June, Jobs B-7a and J-9q had been completed while Jobs F-8n and Y-6c were not completed. In addition, 72 of the units from Job B-7a have been sold and 90 of the units from Job J-9q were sold. Assume Job B-7a consisted of a total of 100 units and Job J-9q consisted of a total of 200 units. The actual overhead cost for June amounted to $5,474. Hv7ku Company had no inventories of any type at June 1. Calculate Hv7ku Company's cost of goods sold for June after the overhead variance has been closed.
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