Instructions Amount Descriptions Instructions Applying Overhead to Jobs, Costing Jobs Gorman Company builds internal conveyor equipment to client specifications. On October 1, Job 877 was in process with a cost of $18,540 to date. During October, Jobs 878, 879, and 880 were started. Data on costs added during October for all jobs are as follows: Direct materials $14,430 $5,910 $3,580 Direct labor Job-Order Cost Sheet Job 877 Job 878 Job 879 Job 880 14,000 8,900 1,800 $1,820 Calculations and Job Price 2,000 Overhead is applied to production at the rate of 80% of direct labor cost. Job 877 was completed on October 28, and the client was billed at cost plus 50%. All

Applying Overhead to Jobs, Costing Jobs Gorman Company builds internal conveyor equipment to client specifications. On October 1, Job 877 was in process with a cost of $18,540 to date. During October, Jobs 878,879 , and 880 were started. Data on costs added during October for ail jobs are as follows: Overhead is applied to production at the rate of 80% of direct labor cost Job 877 was completed on October 28 , and the client was biled at cost plua 50%. All Applying Overhead to Jobs, Costing Jobs Gorman Company builds internal conveyor equipment to client specifications. On October 1, Job 877 was in process with a cost of $18,540 to date. During October, Jobs 878,879 , and 880 were started. Data on costs added during October for ail jobs are as follows: Overhead is applied to production at the rate of 80% of direct labor cost Job 877 was completed on October 28 , and the client was biled at cost plua 50%. All