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General Corporation - Computations using a job order system  - 30 Dec, 2012

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 the storeroom 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 of 20% 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 year ends on May 31.

 

Instructions:

a.         Compute the total overhead applied to production during May.

b.         Compute the cost of the ending work in process inventory.

c.         Compute the cost of jobs completed during May.

d.         Compute the cost of goods sold for the year ended May 31.



Category : Cost Accounting

Search Keywords :
General , Computations , Job , Order , System , Other , Daily , Overhead 


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Answer  - 30 Dec, 2012
a. Overhead rate is 150% of direct labor cost Direct labor cost in May =....


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