Question 5

Time: 16 minutes

Total: 10 marks

Gilford, Inc., uses a job-order costing system. Costs going through the company's work-in-process account during June are listed below. Manufacturing overhead is applied to production using a predetermined overhead rate based on direct labour cost.

Work in process

Balance

0

$76,500 transferred out

Direct materials

$23,000

Direct labour

30,000

Manufacturing overhead

39,000

Balance

$15,500

Only Job 105 was still in process at the end of the month. This job had been charged with $1,700 in direct materials cost.

Required:

a.) Complete the following for Job 105:

Direct materials

$1,700

Direct labour

Manufacturing overhead

Total cost at June 30

b.) Determine the total amount of materials cost charged to completed jobs during the month.