Pavlovich Prosthetics Company produces artificial limbs for individuals. Each prosthetic is unique. On January 1, three jobs, identified by the name of the person being fitted with the prosthetic, were in process with the following costs:

During the month of January, two more jobs were started, Jasper and Dashell. Materials and labor costs incurred by each job in January are as follows:

Tillson and Jasper€™s prosthetics were completed and sold by January 31.

Required:
1. If overhead is applied on the basis of direct labor dollars, what is the overhead rate?
2. Prepare simple job-order cost sheets for each of the five jobs in process during January.
3. What is the ending balance of Work in Process on January 31? What is the Cost of Goods Sold in January?
4. Suppose that Pavlovich Prosthetics Company prices its jobs at cost plus 30 percent. In addition, during January, marketing and administrative expenses of $2,635 were incurred. Prepare an income statement for the month of January.

Transcribed Image Text:

Carter Pelham Tillson Direct materials Direct labor Applied overhead $ 210 615 $1,290 700 1,260 1,071 440 374 595 S1024 $1.910 $3,62 Tota Materials Direct Labor Carter Pelham Tillson Jasper $ 600 300 200 240 2,100 240 550 770 2,310 190 Dashell