Question:
(Job cost sheet analysis) You have applied for a cost accounting position with Chelsea Containers. The company controller has asked all candidates to take a quiz to demonstrate their knowledge of job order costing. Chelsea's job order costing system is based on normal costs, and overhead is applied based on direct labor cost. The following information pertaining to May has been provided to you:
|
Direct
|
|
Applied
|
|
|
Job No.
|
Material
|
Direct Labor
|
Overhead
|
Total Cost
|
|
67
|
$ 35,406
|
$13,840
|
$15,916
|
$ 65,162
|
|
69
|
109,872
|
14,480
|
16,652
|
141,004
|
|
70
|
2,436
|
4,000
|
4,600
|
11,036
|
|
71
|
308,430
|
57,000
|
?
|
?
|
|
72
|
57,690
|
4,400
|
5,060
|
67,150
|
You are informed that Job #68 had been completed in April. You are also told that Job #67 was the only job in process at the beginning of May. At that time, the job had been assigned $25,800 for direct material and $7,200 for direct labor. At the end of May, Job #71 had not been completed; all others were complete. Answers to the following questions are required:
a. What is Chelsea Containers' predetermined overhead rate?
b. What was the total cost of beginning Work in Process Inventory?
c. What were total direct manufacturing costs incurred for May?
d. What was cost of goods manufactured for May?