Question

Part 4: Information to use in completing is below and the requirements follow where you will...

Part 4: Information to use in completing is below and the requirements follow where you will answer the questions.                                                                                               

                                                                                               

Glass Company makes glass orders based on the customer specifications, so the company uses job costing to track costs.                                                                   

The company uses direct labor hours as the cost driver for manufacturing overhead application.                                                                

The company estimated the following manufacturing overhead costs for the year: $600,000       

The company estimated the following usage of direct-labor hours for the year:    200,000                                

                                                                                               

Beginning Work-in-process, March 1 (Job 57)                                       $108,000                            

                                               

Beginning Finished Goods, March 1 (Job 55)                                         $125,000                            

                                                                                               

Labor Information for March:                                                                     

                                Direct-labor hours:                                                         

                                                Job 57    7,000                    

                                                Job 58    6,000                    

                                                Job 59    4,000                    

                                Labor costs:                                                       

                                                Direct-labor wages          $408,000                            

                                                Indirect-labor wages       $30,000                               

                                                Supervisory salaries        $12,000                               

                                                                                               

Material Information for March:                                                               

                                                Raw Materials, Inventory, March 1          $21,000                               

                                                Purchase or raw material                              $210,000                            

Direct materials requisitioned:                                                  

                                                Job 57                    $90,000                               

                                                Job 58                    $75,000                               

                                                Job 59                    $51,000                               

                                                                                               

Other costs incurred in March:                                                                  

                                Factory Utilities                                                                                 $12,000                               

                                Sales offices Utilities                                                                       $3,200                 

                                Administrative offices Utilities                                                    $2,000                 

                                Factory equipment repair and maintenance costs              $11,200                               

                                Depreciation on factory equipment                                         $5,000                 

                                Manufacturing supplies purchased and used                        $24,000                               

                                                                                               

During March the following jobs were completed and sold for the following sales price:                                                                  

                                Job 57                    $400,000                            

                                Job 58                    $250,000                            

                                                                                               

                                                                                               

Required:            You need to use cell references to provide answers and calculations.

Complete the job cost sheets provided below for the month of March:                                                                   

Labor Rate

$ 24.00

Job 57

Job 58

Job 59

Total

Beginning Balance

$108,000

Current costs:

Direct materials

$90,000

$75,000

$   51,000.00

$   216,000.00

Direct Labor

         $168,000.00

$        144,000.00

$   96,000.00

$   408,000.00

Applied overhead

$21,000

$18,000

$   12,000.00

$     51,000.00

Total

$387,000

$237,000

$159,000

Determine the ending Work-In-Process Inventory at the end of March and provide the number of the Job(s) still in Work-in-Process at the end of March and the determine total cost of ending work in process for March. .                                                              

Job in Work-In-Process at March 31

Job 57

Job 58

Job 59

Total

Beginning Balance

$ 108,000.00

$   108,000.00

Direct Materials

$ 90,000.00

$   75,000.00

$     51,000.00

$   216,000.00

Direct Labor

$168,000.00

$ 144,000.00

$     96,000.00

$   408,000.00

Applied Overhead

$21,000.00

$   18,000.00

$     12,000.00

$     51,000.00

Completed Jobs

$(387,000.00)

$(237,000.00)

$ (624,000.00)

Balance March 31

$                     -  

$              -  

$159,000.00

$   159,000.00

Determine the ending Finished Goods for March and provide the number of the Job(s) in Finished Goods at the end of March and determine the total cost of ending finished goods for March.                                

Job in Finished Goods at March 31

Job 55

Job 57

Job 58

Total

Beginning balance

125000

125000

Completed Jobs

387000

237000

624000

Jobs Sold

-387000

-237000

-624000

Balance March 31

125000

0

0

125000

                               

QUESTION Determine the Cost of Goods Sold for March and provide the number of the Job(s) in Cost of Goods Sold for March and determine the total cost of goods sold for March.                             

Homework Answers

Answer #1
A Estimated Manufacturing overhead cost $600,000
B Estimated usage of direct labor hour 200000
C=A/B Applied overhead rate $3
Manufacturing Overhead costs for March:
Indirect labor wages $30,000
Supervisory salaries $12,000
Factory utilities $12,000
Factory repair and maintenance costs $11,200
Depreciation on factory equipment $5,000
Manufacturing supplies purchased and used $24,000
Total manufacturing overhead in March $94,200
Direct labor hours in March(7000+6000+4000) 17000
Applied overhead in March=3*17000 $51,000
Underapplied overhead $43,200 (94200-51000)
CALCULATION OF COST OF GOODS FOR MARCH:
Job 57 transferred from finished goods $387,000
Job 58 transferred from finished goods $237,000
Under -applied overhead $43,200
Total cost of goods sold $667,200
Number of jobs in cost of goods sold:57,58
Cost of goods sold in March $667,200
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