Super Builders is a manufacturer of custom equipment and applies overhead to jobs on the basis of direct labour hours. Super Builders estimated $754,000 overhead costs and 58,000 direct labour hours for the year. Super Builders had 2 jobs in work in process inventory on January 1, 2015. The company started 2 more jobs during January. The following data was provided for January:

	Job 102	Job 103	Job 104	Job 105
Balance Jan. 1, 2015	$36,480	$19,020	$0	$0
Direct Materials	$34,420	$45,800	$30,480	$16,420
Direct Labour Cost	$23,000	$32,500	$19,500	$9,720
Direct Labour Hours	4,600	6,500	3,900	1,944

By January 31, 2015, Job 102 and Job 103 were completed and Job 103 was sold. The rest of the jobs remained in process.

Required:

1. Calculate the plantwide overhead rate per direct labour hour. (2 marks)

Ans a) 754000/58000= $13 per direct labor hour

2. Complete the job order cost sheets for all four jobs in January. (4 marks)

	Job 102	Job 103	Job 104	Job 105
Beginning Balance
Direct Materials
Direct Labour
Overhead Applied
Total Cost

3. Calculate the work in process inventory on January 31, 2015: (1 mark)

4. Calculate the finished goods inventory on January 31, 2015. (1 mark)

5. Calculate the cost of goods sold for January. (1 mark)

6. Assume Super Builders applies 40% markup on cost. What is the selling price of Job 103? (1 mark)