Question

Job 1 Job 2 Job 3

Direct Materials $6000 $3,400 $4,000

Direct Labor $1,800 $780 $600

Machine Hours 28   24   12

Direct Labor Hours 75 32 25

A predetermined overhead rate of $180 per machine hour is used to apply manufacturing overhead.

There was no beginning work-in-process inventory on March1. All three jobs were started during March. Job 2 was completed and sold during the month of March and Jobs 1 and 3 were still being worked on during the month. There was no beginning finished goods inventory balance on March 1

1.) The dollar value of ending work in process inventory March 31st would be:

2.)The dollar Value of cost of goods sold for March would be:

Answer 1

1) Value of Ending Work in Process inventory

	Job 1	Job 3	Total
Direct Materials	$ 6,000.00	$ 4,000.00	$ 10,000.00
Direct Labor	$ 1,800.00	$     600.00	$    2,400.00
Manufacturing Overhead	$ 5,040.00	$ 2,160.00	$    7,200.00
Total	$ 6,760.00	$ 6,760.00	$ 13,520.00

2)  cost of goods sold for March

	Job 2
Direct Materials	$ 3,400.00
Direct Labor	$     780.00
Manufacturing Overhead	$ 4,320.00
Total	$ 6,760.00