Question - Waltman and Associates, a public accounting firm, uses job-order costing to capture the costs of its audit jobs. There were no audit jobs in process at the beginning of November. Listed below are data concerning the three audit jobs conducted during November:
Koppel Dupont Rojas
Direct Materials $650 $570 $435
Auditor Labour Costs $4,700 $6,100 $5,775
Auditor Hours 64 75 70
Overhead costs are applied to jobs on the basis of auditor hours, and the predetermined overhead rate is $58 per auditor hour. The Koppel job is the only incomplete job at the end of November. Actual overhead for the month was $12,500.
Would you be able to help me with the following?
1. Determine the cost of each job.
2. Indicate the balance of the Work in Process account at the end of November.
3. Calculate the ending balance of the Overhead account for November.