Kenno 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, Davison and Egberts. Materials and labour costs incurred by each job in January are as follows:

Cooper's and Davison's prosthetics were completed and sold by January 31.
Required:
1. If overhead is applied on the basis of direct labour 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 as at January 31? What is the Cost of Goods Sold in January?
4. Suppose that Kenno Prosthetics Company prices its jobs at cost plus 20 percent. In addition, during January, marketing and administrative costs of $3,400 were incurred. Prepare an income statement for the month of January.

Transcribed Image Text:

Asher Cooper Bryson Direct materials Direct labour Applied overhead Total $1,360 $ 3,120 2,800 4,200 2,240 3,360 $ 400 1,400 1,120 $2,920 $10,680 $6,400 Direct Labour Materials Asher Bryson Cooper Davison $2,400 $1,200 3,440 5,240 1,040 800 1,000 6,600 Egberts 720