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:

Job A Job B Job C
Cost of Jobs in Process, 4/1/2013 $12,700 $1,100 $
Direct Materials Used 2,700 9,400 11,100
Direct Labor 11,400 9,400 3,700
Applied Manufacturing Overhead ? ? ?

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

a. Work In Process = $17,575 (Job C)

b. Finished Goods = $26,950 (Job B)

c. Cost of Goods Sold = $35,350 (Job A)

Step-by-step explanation:

Job A Job B Job C

Cost of jobs in process, 4/1/2013 $12,700 $1,100 -

Direct materials used $2,700 $9,400 $11,100

Direct Labor $11,400 $9,400 $3,700

Direct labor hours 570 470 185

Applied overhead ($15 x labor) $8,550 $7,050 $2,775

Cost of jobs 4/30/2013 $35,350 $26,950 $17,575