Question

Jenkins Company uses a job order cost system with overhead applied to jobs on the basis of direct labor hours. The direct labor rate is $20 per hour, and the predetermined overhead rate is $15 per direct labor hour. The company worked on three jobs during April. Jobs A and B were in process at the beginning of April. Job A was completed and delivered to the customer. Job B was completed during April, but not sold. Job C was started during April, but not completed. The job cost sheets revealed the following costs for April: Cost of Jobs in Process, 4/1/2018 Direct Materials Used Direct Labor Applied Manufacturing Overhead Job A $11,300 1,300 8,600 Job B $1,200 6,600 6,600 Job C $ - 6,900 2,300 Required: If no other jobs were started, completed, or sold, determine the balance in each of the following accounts at the end of April: a. Work in Process b. Finished Goods C. Cost of Goods Sold

Answer 1

Sol Jenkin Company. Particula's Job A Cost of Job In Procese $11,300 Direct Material Used $ 1,300 Direct labour $ 8.600 Direct labour Hour 430 Appliceof Manufacturing Overhead @ $15 per Direct labour Hour $ 6450 Cost04 Job 40/30/2018_$ 27,650 Stettes I sold Job B I BI Jobc $1, 200 $6,600 $ 6.900 $ 6,600 $2300 _330 115 $4950 $19.350 I unsold $1725 $10,925 in progress from the above we can see that o Ja. Work In Progress/Process 16. I finished Good's _ Lc. Cost of Good's Sold Job.c Job B JobA I $10,925 $ 19,350 $ 27,650

ܙܘܠܢ ܫܫܐ]-Wo Direct labour Hour - Totaal Direct labour Cost Direct labour Hourly Rate Job 'A' Direct labour Hour $8,600 $20 4.30 Hour's Job'B' Direeld labour Hour : $ 6,600 $20 330 Hour's Job 'c' Direct labour Hour - $2,300 $20 115 Hown's

Applied Manufacturing Overhead - Direct labour Howr x $15 Job'A' = 430 Houis X $15 $6,4.50 .__ Job'B' = $ 15 330 Hour's X $ 4950 - Joble __ 115 Hours & $ 1725 $15 Cost of Job on 4/30/2018 => - (Cost of job in process of Dired Material used t. Direct Tabour & Applred Manufacturing Overhead) JobA = $11,300 + $13.00 + $8600 + $6,450 = $ 27,650 Job'B' - $1200 + $6600 + $6600 + $4,950 = $ 19,350 Joble $0 + $ 6,900 + $ 2,300 + $ 1725 - $10,925