Question 1 Job Costs Using a Plantwide Overhead Rate Perrin Company designs industrial prototypes for outside companies Budgeted overhead for the year was $150,000, and budgeted direct labor hours were 15,000 The average wage rate for direct labor is expected to be $20 per hour During June, Perrin Company worked on four jobs Data relating to these four jobs follow Job 39 Job 40 Job 41 Job 42 Beginning balance $24,500 $32,600 $19,500 $400 Materials requisitioned 19,500 20,000 13,800 13,800 Direct labor cost 10,600 17,100 8,450 4,700 Overhead is assigned as a percentage of direct labor cost During June, Jobs 39 and 40 were completed Job 39 was sold at 110 percent of cost Job 40 is the only job in Finished Goods Inventory and will remain there until the customer accepts delivery and pays Jobs 41 and 42 remain unfinished at the end of the month Required 1 Calculate the balance in Work in Process as of June 30 $fill in the blank 1 2 Calculate the balance in Finished Goods as of June 30 $fill in the blank 2 3 Calculate the cost of goods sold for June $fill in the blank 3 4 Calculate the price charged for Job 39 Round your answer to two decimal places $fill in the blank 4 5 What if the customer for Job 40 was able to pay for the job by June 30 What would happen to the balance in Finished Goods Finished Goods would increaseFinished Goods would decreaseFinished Goods would not change What would happen to the balance of Cost of Goods Sold Cost of Goods Sold would increaseCost of Goods Sold would decreaseCost of Goods Sold would not change Question 2 Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost On April 1, Sangvikar Company had the following balances in its inventory accounts Materials Inventory $12,740 Work in Process Inventory 21,110 Finished Goods Inventory 8,790 Work in process inventory is made up of three jobs with the following costs Job 114 Job 115 Job 116 Direct materials $2,449 $2,649 $3,024 Direct labor 1,800 1,560 4,280 Applied overhead 1,260 1,092 2,996 During April, Sangvikar experienced the transactions listed below Materials purchased on account, $28,600 Materials requisitioned Job 114, $16,590 Job 115, $12,040 and Job 116, $5,280 Job tickets were collected and summarized Job 114, 160 hours at $12 per hour Job 115, 210 hours at $14 per hour and Job 116, 80 hours at $17 per hour Overhead is applied on the basis of direct labor cost Actual overhead was $4,630 Job 115 was completed and transferred to the finished goods warehouse Job 115 was shipped, and the customer was billed for 125 percent of the cost Required 1 Calculate the predetermined overhead rate based on direct labor cost fill in the blank 1 of direct labor cost 2 Calculate the ending balance for each job as of April 30 When required, round your answers to the nearest dollar Use your rounded answers in subsequent computations, if necessary Ending Balance Job 114 $fill in the blank 2 Job 115 $fill in the blank 3 Job 116 $fill in the blank 4 3 Calculate the ending balance of Work in Process as of April 30 When required, round your answer to the nearest dollar $fill in the blank 5 4 Calculate the cost of goods sold for April When required, round your answer to the nearest dollar $fill in the blank 6 5 Assuming that Sangvikar prices its jobs at cost plus 25 percent, calculate the price of the one job that was sold during April When required, round your answer to the nearest dollar $fill in the blank 7

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Question 1: Job Costs Using a Plantwide Overhead Rate Perrin Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $150,000, and

Question 1:

Job Costs Using a Plantwide Overhead Rate

Perrin Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $150,000, and budgeted direct labor hours were 15,000. The average wage rate for direct labor is expected to be $20 per hour. During June, Perrin Company worked on four jobs. Data relating to these four jobs follow:

	Job 39	Job 40	Job 41	Job 42
Beginning balance	$24,500	$32,600	$19,500	$400
Materials requisitioned	19,500	20,000	13,800	13,800
Direct labor cost	10,600	17,100	8,450	4,700

Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 110 percent of cost. Job 40 is the only job in Finished Goods Inventory and will remain there until the customer accepts delivery and pays. Jobs 41 and 42 remain unfinished at the end of the month.

Required:

1. Calculate the balance in Work in Process as of June 30.

$fill in the blank 1

2. Calculate the balance in Finished Goods as of June 30.

$fill in the blank 2

3. Calculate the cost of goods sold for June.

$fill in the blank 3

4. Calculate the price charged for Job 39. Round your answer to two decimal places.

$fill in the blank 4

5. What if the customer for Job 40 was able to pay for the job by June 30? What would happen to the balance in Finished Goods?

Finished Goods would increaseFinished Goods would decreaseFinished Goods would not change

What would happen to the balance of Cost of Goods Sold?

Cost of Goods Sold would increaseCost of Goods Sold would decreaseCost of Goods Sold would not change

Question 2:

Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost

On April 1, Sangvikar Company had the following balances in its inventory accounts:

Materials Inventory	$12,740
Work-in-Process Inventory	21,110
Finished Goods Inventory	8,790

Work-in-process inventory is made up of three jobs with the following costs:

	Job 114	Job 115	Job 116
Direct materials	$2,449	$2,649	$3,024
Direct labor	1,800	1,560	4,280
Applied overhead	1,260	1,092	2,996

During April, Sangvikar experienced the transactions listed below.

Materials purchased on account, $28,600.
Materials requisitioned: Job 114, $16,590; Job 115, $12,040; and Job 116, $5,280.
Job tickets were collected and summarized: Job 114, 160 hours at $12 per hour; Job 115, 210 hours at $14 per hour; and Job 116, 80 hours at $17 per hour.
Overhead is applied on the basis of direct labor cost.
Actual overhead was $4,630.
Job 115 was completed and transferred to the finished goods warehouse.
Job 115 was shipped, and the customer was billed for 125 percent of the cost.

Required:

1. Calculate the predetermined overhead rate based on direct labor cost.

fill in the blank 1 % of direct labor cost

2. Calculate the ending balance for each job as of April 30. When required, round your answers to the nearest dollar. Use your rounded answers in subsequent computations, if necessary.

	Ending Balance
Job 114	$fill in the blank 2
Job 115	$fill in the blank 3
Job 116	$fill in the blank 4

3. Calculate the ending balance of Work in Process as of April 30. When required, round your answer to the nearest dollar.

$fill in the blank 5

4. Calculate the cost of goods sold for April. When required, round your answer to the nearest dollar.

$fill in the blank 6

5. Assuming that Sangvikar prices its jobs at cost plus 25 percent, calculate the price of the one job that was sold during April. When required, round your answer to the nearest dollar.

$fill in the blank 7