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Page 4 of 11 Problem 3 A manufacturing company employs job order costing to account for its costs. There are three production departments, and separate
Page 4 of 11 Problem 3 A manufacturing company employs job order costing to account for its costs. There are three production departments, and separate departmental overhead application rates are employed because the operations of the departments are distinct. All jobs generally pass through all three production departments. Data regarding the hourly direct labor rates, overhead application rates, and three jobs on which work was done during the month appear below. Job 101 and Job 102 were completed during the current month. (CIA Examination adapted) Production Departments Department 1 Department 2 Department 3 Direct Labor Rate / hr $21.00 $25.00 $26.00 MOH Rate 50% of direct materials $8.00 per machine hour 75% of direct labor cost Job 101 $25,500 Job 102 $32,400 $40,000 $3,000 $26,000 $5,000 -O- -0- Beginning Work-in-Process Direct materials: Department 1 Department 2 Department 3 Direct labor hours: Department 1 Department 2 Department 3 Machine hours: Department 1 Department 2 Department 3 500 200 1,500 400 250 1,800 -0- 1,200 1,500 -0- 1,500 1,800 Required: Assume both Jobs 101 and 102 are completed. . This question refers to Problem 3. What are the total manufacturing costs added to Job 101 in Department 1? . This question refers to Problem 3. What are the total manufacturing costs added to Job 101 in Department 2? This question refers to Problem 3. What are the total manufacturing costs added to Job 101 in Department 3? This question refers to Problem 3. What are the total manufacturing costs added to Job 102 in Department 1? This question refers to Problem 3. What are the total manufacturing costs added to Job 102 in Department 2? This question refers to Problem 3. What are the total manufacturing costs added to Job 102 in Department 3? This question refers to Problem 3. What is the total cost of goods manufactured for Job 101? This question refers to Problem 3. What is the total cost of goods manufactured for Job 102
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