The Brewster Company manufactures custom brewing machines to order. On January 1, there were two jobs in process, #211 and #240. The following costs were applied to these jobs in the prior year:

	Job No.
	211	240
Direct material	$ 5,000	$ 8,000
Direct labor	4,000	3,000
Overhead	4,400	3,300
Total	$13,400	$14,300

During January, the following transactions took place:

*	Raw material costing $40,000 was purchased on account.
*	Jobs #230, #235, and #239 were started and the following costs were applied to them:

	JOB
	230	235	239
Direct materials	$3,000	$10,000	$7,000
Direct labor	5,000	6,000	4,000

*	Job #211 and Job #240 were completed after incurring additional direct labor costs of $2,000 and $4,000, respectively
*	Wages paid to production employees during January totaled $25,000.
*	Depreciation for the month of January totaled $10,000.
*	Utilities bills in the amount of $10,000 were paid for operations during December.
*	Utilities bills totaling $12,000 were received for January operations.
*	Supplies costing $2,000 were used.
*	Miscellaneous overhead expenses totaled $24,000 for January.

Actual overhead is applied to individual jobs at the end of each month using a rate based on actual direct labor costs.

Required:

a.	Determine the January overhead rate.

b.	Determine the cost of each job.

c.	Prepare a statement of cost of goods manufactured.

Answer rating: 100% (QA)

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