Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost, Unit Cost
On August 1, Cairle Company's work-in-process inventory have 3 jobs with given costs:
Job 70 Job 71 Job 72
Direct Materials $1600 $2000 $850
Direct Labor 1900 1300 900
Applied overhead 1425 975 675
In August, 4 more jobs were began. Information on costs added to 7 jobs during month is as follows:
Job 70 Job 71 Job 72 Job 73 Job 74 Job 75 Job 76
Direct materials $800 $1235 $3550 $5000 $300 $560 $80
Direct Labor 1000 1400 2200 1800 600 860 172
Before the end of August, Jobs 70, 72, 73, and 75 were completed. On August 31, Jobs 72 and 75 were sold.
i) Compute predetermined overhead rate based on direct labor cost.
ii) Compute ending balance for every job as of August 31.
iii) Compute the ending balance of Work in Process as of August 31.
iv) Compute the cost of goods sold for August.
v) Suppose that Cairle prices its jobs at cost plus 20%, compute Cairle's sales revenue for August.