Question

A company began operations on January 1, 20x3. The company uses a job order system and started the following jobs during January 20x3: Job 101 Job 102 Job 103 Direct materials $18422 $24413 $35988 Direct labour hours 971 1387 737 Additional information is as follows: Total estimated overhead $302539 Total estimated direct labour hours 19248 Actual direct labour rate $19 per direct labour hour All three jobs were completed by the end of January 20x3. Finished goods at January 31, 20x3 included Job 101 only. What is Cost of Goods Sold for January 20x3?

Answer 1

	Job 101	Job 102	Job 103
Direct labor hours	971	1387	737
Direct labor rate	19	19	19
Direct labor	18449	26353	14003
Total estimated overheads	302539
Estimated direct labor hours	19248
Predetermined overhead rate	15.72	(302539/19248)
	Job 101	Job 102	Job 103
Predetermined overhead rate	15.72	15.72	15.72
Direct labor hours	971	1387	737
Overheads	15262	21801	11584
	Job 101	Job 102	Job 103
Direct material	18422	24413	35988
Direct labor	18449	26353	14003
Overheads	15262	21801	11584
Total	52133	72567	61575
Finished goods inventory 31 january
Job 101	52133
Cost of goods sold
Job 102	72567
Job 103	61575
Total cost of goods sold	134142