Paladin Parabolics Company produces high-quality microscopes for  education and health care uses. The company uses a job order costing system. Because the microscopes’  optics require significant manual labor to ensure adherence to strict manufacturing specifications, the  company applies overhead on the basis of direct labor hours. At the beginning of 2021, the company  estimated its manufacturing overhead would be $1,960,000 and that employees would work a total of  98,000 direct labor hours.

During March, the company worked on the following five jobs:

Jobs 134 and 158 were started in January, Jobs 212 and 287 were started in February, and Job 301 was  started in March. During March, workers completed Jobs 134, 158, and 212. Jobs 134 and 212 were delivered to customers during March.

Actual overhead for the month of March was $163,000.

Required

a. Calculate the predetermined overhead rate used by Paladin Parabolics Company in 2021.

b. Calculate the total manufacturing cost for March.

c. Calculate the total cost for each of the five jobs as of March 31.

d. Calculate the cost of goods manufactured for March.

e. Calculate the balance in the Work in Process Inventory account as of March 31.

f. Calculate the Cost of Goods Sold for March.

g. Calculate the balance in the Finished Goods Inventory account as of March 31.

Transcribed Image Text:

Direct Materials Direct Labor Direct Labor Hours Beginning Balance added during added during added during March Job March March 134 $218,600 $ 4,000 $ 8,400 430 158 45,275 2,500 12,160 475 212 21,800 86,400 36,650 3,450 287 34,350 41,800 31,850 2,200 301 18,990 21,845 1,400 Total $320,025 $153,690 $110,905 7,955