Hastings International uses job order costing. Manufacturing overhead is charged to individual jobs through the use of a predetermined overhead rate based on direct labor costs. The following information appears in the company’s Work in Process Inventory account for the month of April:

Debits to account:

Balance, April 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $12,000

Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000

Manufacturing overhead (applied to jobs as 160% of direct labor cost)... 24,000

Total debits to account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $69,000

Credits to account:

Transferred to Finished Goods Inventory account . . . . . . . . . . . . . . . . . . . . 55,000

Balance, April 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,000

Instructions

a. Assuming that the direct labor charged to the jobs still in process at April 30 amounts to $3,750, compute the amount of manufacturing overhead and the amount of direct materials that have been charged to these jobs as of April 30.

b. Prepare general journal entries to summarize:

1. The manufacturing costs (direct materials, direct labor, and overhead) charged to production during April.

2. The transfer of production completed during April to the Finished Goods Inventory account. 3. The cash sale of 90 percent of the merchandise completed during April at a total sales price of $77,000. Show the related cost of goods sold in a separate journal entry.