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, 4/1/2016	$	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

• Requirement, as asked

	Job A	Job B	Job C
Cost of Jobs in Process, 4/1/2016	$12,300	$1,000	—
Direct Materials Used	$2,300	$8,600	$9,900
Direct Labor	$10,600	$8,600	$3,300
Applied Manufacturing Overhead [see note below]	$7,950	$6,450	$2,475
Balance at the end of April = Answer	$33,150	$24,650	$15,675

• Note

Working		Job A	Job B	Job C
A	Direct Labor	$10,600	$8,600	$3,300
B	Direct labor rate	$20	$20	$20
C = A/B	No. of direct labor hours	530	430	165
D	Predetermined Overhead rate per DLHs	$15	$15	$15
E = C x D	Applied Manufacturing Overhead	$7,950	$6,450	$2,475