Cleveland Metals uses a job cost system and applies factory overhead to manufacture at a pre-determined rate of 180 percent of direct labor cost. Data pertaining to recent operations follow.
- Job no. 636 was the only job in process on 1st January of the current year. The Work in Process account contained a $24,600 balance on this date.
- Jobs no. 637, 638, and 639 were started during January.
- Total direct material requisitions and direct labor incurred during January amounted to $89,200 and $114,500, correspondingly.
- The only job that remained in process on 31st January was job no. 638, with costs of $15,000 for direct materials and $20,000 for direct labor.
a. Evaluate the total cost of the work in process inventory on January 31.
b. Determine the cost of jobs completed during January, and show the proper journal entry to reflect job completion.