Uehler Prosthetics Company produces artificial limbs for individuals. Each prosthetic is unique. On January 1, three jobs, identified by the name of the person being fitted with the prosthetic, were in process with the following costs:

During the month of January, two more jobs were started, Johns and Burton. Materials and labor costs incurred by each job in January are as follows:

Wollner and Johns' prosthetics were completed and sold by January 31.

Required:
1. If overhead is applied on the basis of direct labor dollars, what is the overhead rate?
2. Prepare simple job-order cost sheets for each of the five jobs in process during January.
3. What is the ending balance of Work in Process on January 31? What is the Cost of Goods Sold in January?
4. Suppose that Uehler Prosthetics Company prices its jobs at cost plus 20 percent. In addition, during January, marketing and administrative costs of $850 were incurred. Prepare an income statement for the month ofJanuary.

Transcribed Image Text:

Styne Wolilner Direct materials Direct labor Applied overhead Asher $100 350 280 $ 340 780 1,050 840 $730 1,600$2,670 700 560 Total Materials Direct Labor Asher Styne Wollner Johns Burton $ 600 550 860 1,310 260 S 300 200 250 1,650 180