Question: 1. ABC is a job-order costing manufacturer that uses a plantwide overhead rate based on direct labor hours. Estimations for the year include $800,000 in overhead and 50,000 direct labor hours. ABC produced five products in March. Data are as follows:
|
Product
89
|
Product
90
|
Product
91
|
Product
92
|
Product
93
|
|
Balance, 3/1
|
$30,000
|
$40,000
|
$ 10,000
|
$0
|
$0
|
|
Direct materials
|
15,000
|
17,000
|
25,000
|
18,000
|
10,000
|
|
Direct labor cost
|
$10,000
|
$8,000
|
$16,000
|
$9,000
|
$5,000
|
|
Direct labor hours - for month
|
1,000
|
800
|
1,600
|
900
|
500
|
By March 31, Jobs 89 and 91 were completed and sold. The rest of the jobs remained in process.
A. Calculate the plantwide overhead rate.
B. Calculate the Work in Process on March 31.
C. Calculate the cost of goods sold for March.
D. Assume ABC marks up cost by 40%. What is the selling price of Jobs 89 and 91?