Question: Overhead was applied to all jobs in process at 180 percent of direct labor cost. Jobs 1005, 1006, 1007, and 1008 were completed and transferred to finished goods. Jobs 1009 and 1010 were still in process at the end of the week. Jobs 1005, 1006, 1007, and 1008 were shipped to customers and billed at 150 percent of total job cost.
Required a. Calculate the total cost of each job.
b. Prepare journal entries to record the above information.
Problem: Job Cost Sheets and Inventory Accounts. Renton Custom Windows produces custom windows for business and residential customers who supply Renton with architectural specifications. At the start of 2017, three jobs were in process: Cost incurred as of 1/1/2017 Job 258 $5,000 Job 259 6,000 Job 260 3,500 Also at the start of 2017, one job was completed and awaiting shipment: Cost incurred as of 1/1/2017 Job 257 $9,000 During 2017, the company incurred the following costs: Direct material $750,000 Direct labor 1,650,000 Manufacturing overhead 2,150,000 At the end of 2017, two jobs were in process: Cost incurred as of 12/31/2017 Job 345 $2,500 Job 346 5,900 In addition, four jobs were completed and awaiting shipment: Cost incurred as of 12/31/2017 Job 341 $1,500 Job 342 3,300 Job 343 2,400 Job 344 4,500
Required: a. What are the beginning and ending balances in Work in Process Intenvory?
b. What are the beginning and ending balances in Finished Goods Intenvory?
c. What is Cost of Goods Sold? What job numbers likely relate to the balance in Cost of Goods Sold?