Question:
I am having trouble with ch 4 problem 2 I'm hoping someone can lend a hand i need to plug n the numbers form the excel sheet for July into the question. Please look at numbers in the excel sheet they need to be inserted into the equation for July I am just not sure where they are supposed to go.
Computations using a job order system
General Corporation employs a job order cost system. On May 1, the following balances were extracted from the general ledger:
| Work in process |
$35,200 |
| Finished goods |
86,900 |
| Cost of goods sold |
128,700 |
Work in Process consisted of two jobs, No. 101 ($20,400) and No. 103 ($14,800). During May, direct materials requisitioned from thestoreroom amounted to $96,500, and direct labor incurred totaled $114,500. These figures are subdivided as follows:
| Direct Materials |
Direct Labor |
| Job No. |
Amount |
Job No. |
Amount |
| 101 |
$5,000 |
101 |
$7,800 |
| 115 |
19,500 |
103 |
20,800 |
| 116 |
36,200 |
115 |
42,000 |
| Other |
35,800 |
116 |
18,000 |
| $96,500 |
Other |
25,900 |
| |
|
|
$114,500 |
Job No. 115 was the only job in process at the end of the month. Job No. 101 and three "other" jobs were sold during May at a profit of20% of cost. The "other" jobs contained material and labor charges of $21,000 and $17,400, respectively.
General applies overhead daily at the rate of 150% of direct labor cost as labor summaries are posted to job orders. The firm's fiscal yearends on May 31.
Instructions
- Compute the total overhead applied to production during May.
- Compute the cost of the ending work in process inventory.
- Compute the cost of jobs completed during May.
- Compute the cost of goods sold for the year ended May 31.