Question

Saved Help Save & Exit Submit Check my work On March 1 a dressmaker starts work on three custom-designed wedding dresses. The company uses job order costing and applies overhead to each job (dress) at the rate of 53% of direct materials costs. During the month, the jobs used direct materials as shown below. Direct materials used Job 1 Job 2 Job 3 $5,700 $7,700 $2,200 During the month, the jobs used direct labor as shown below. Jobs 1 and 3 are not finished by the end of March, and Job 2 is finished but not sold by the end of March Job 1 Job 2 $9,800 $4,800 Job 3 $3,800 Direct labor used 1. Determine the amounts of direct materials, direct labor, and factory overhead applied that would be reported on job cost sheets for each of the three jobs for March JOB COST SHEET Job 1 $ 5,700 9.800 3.021 Direct materials Job 3 2.200 Job 2 7.700 4.800 $ $ Direct labor Factory overhead < Prey 4 of 6 !! Next >

Answer 1

1. Determine the amounts of direct materials, direct labor, and factory overhead applied that would be reported on job cost sheets for each of the three jobs for March. JOB COST SHEET Job 1 Job 2 Job 3 Direct materials Direct labor Factory overhead $2,200 3,800 1,166 $7,166 $5,700 9,800 3,021 $18,521 $7,700 4,800 4,081 $16,581 Total 2. Determine the total dollar amount of Work in Process Inventory at the end of March. Ending work in process inventory $25,687 3. Determine the total dollar amount of Finished Goods Inventory at the end of March. Assume the company has no beginning Work in Process or Finished Goods inventories. Finished goods inventory $16,581

Explanation: Overhead Applied Job 1 ($5,700 direct materials cost x 53%) = $3,021 Job 2 ($7,700 direct materials cost x 53%) = $4,081 Job 3 ($2,200 direct materials cost x 53%) = $1,166 %3D Ending work in process inventory Total cost Job 1 (In process) Job 3 (In process) Total $18,521 7,166 $25,687 Finished goods inventory Total cost Job 2 [Finished (unsold)] $16,581