Question

enkins 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, 4/1/2018	$	12,300		$	1,000		$	—
Direct Materials Used		2,300			8,600			9,900
Direct Labor		10,600			8,600			3,300
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:

Answer 1

	Job A	Job B	Job C
Cost of Jobs in Process, 4/1/2018	12300	1000	0
Direct Materials Used	2300	8600	9900
Direct Labor	10600	8600	3300
Applied Manufacturing Overhead	7950	6450	2475
Total cost	33150	24650	15675
Work in process	15675	Job C
Finished goods	24650	Job B
Cost of goods sold	33150	Job A
Workings:
Applied Manufacturing Overhead :
Job A	7950	=10600/20*15
Job B	6450	=8600/20*15
Job C	2475	=3300/20*15