Kim Company is a job-order costing firm that uses a plantwide overhead rate based on direct labor hours. Estimated information for the year is as follows:

Overhead:                          $823,000
Direct labor hours:             100,000

Kim worked on five jobs in July. Data are as follows:

By July 31, Jobs 741 and 742 were completed and sold. Job 743 was completed; beginning Finished Goods inventory equaled zero. The remaining jobs were in process.

Required:

1. Calculate the plantwide overhead rate for Kim Company.
2. Prepare job-order cost sheets for each job showing all costs through July 31.
3. Calculate the balance in Work in Process on July 31. Calculate the balance in Finished Goods on July 31.
4. Calculate Cost of Goods Sold for July.

Transcribed Image Text:

Balance, July 1 Direct materials Direct labor cost Direct labor hours Job 741 $29,870 $25,500 $61,300 3,800 Job 742 Job 743 $55,210 $27,880 $39,800 $14,450 $48,500 $28,700 2,900 2,200 Job 744 $ 0 $13,600 $24,500 2,000 Job 745 $ 0 $ 8,420 $21,300 1,100