JOB ORDER COSTING PROBLEM

During May, $42,000 of direct materials were used on Job # 24, 320 hours of

direct labor were charged at a rate of $25 per hour, and manufacturing

overhead was applied at a rate of 75 % of direct labor costs. Job # 24 was

completed during May and transferred to Finished Goods Inventory.

1. What is the total cost of Job # 24?

1. Prepare the journal entries to record the addition of Materials, Labor and

overhead to Job #24 and the transfer to Finished Goods Inventory (4 journal

entries required).

1. Assume that Job # 24 was sold for cash at 250% of cost. What is the sales

price?