Glass Company makes glass orders based on the customer specifications, so the company uses job costing to track costs.

1. The company uses direct labor hours as the cost driver for manufacturing overhead application.

The company estimated the following manufacturing overhead costs for the year:			$600,000
The company estimated the following usage of direct-labor hours for the year:			200,000
2. Beginning Work-in-process, March 1 (Job 57)			$108,000
3. Beginning Finished Goods, March 1 (Job 55)			$125,000
2. Labor Information for March:
	Direct-labor hours:
		Job 57	7,000
		Job 58	6,000
		Job 59	4,000
	Labor costs:
		Direct-labor wages	$408,000
		Indirect-labor wages	$30,000
		Supervisory salaries	$12,000
3. Material Information for March:
		Raw Materials, Inventory, March 1	$21,000
		Purchase or raw material	$210,000
	Direct materials requisitioned:
		Job 57	$90,000
		Job 58	$75,000
		Job 59	$51,000
4. Other costs incurred in March:
	Factory Utilities		$12,000
	Sales offices Utilities		$3,200
	Administrative offices Utilities		$2,000
	Factory equipment repair and maintenance costs		$11,200
	Depreciation on factory equipment		$5,000
	Manufacturing supplies purchased and used		$24,000
5. During March the following jobs were completed and sold for the following sales price:
	Job 57		$400,000
	Job 58		$250,000

Required:	You need to use cell references to provide answers and calculations.
1. Develop the predetermined overhead rate.
2. Complete the job cost sheets provided below for the month of March:
		Job 57	Job 58	Job 59
Beginning Balance
Current costs:
Direct materials
Direct Labor
Applied overhead
Total

3. Determine the ending Work-In-Process Inventory at the end of March and provide the number of the Job(s) still in Work-in-Process at the end of March and the determine total cost of ending work in process for March.

4. Determine the ending Finished Goods for March and provide the number of the Job(s) in Finished Goods at the end of March and determine the total cost of ending finished goods for March.

5. Determine the Cost of Goods Sold for March and provide the number of the Job(s) in Cost of Goods Sold for March and determine the total cost of goods sold for March.

Answer rating: 100% (QA)

Requirement1 Estimated manufacturing overheads for the year 600000 Estimated machine hours for the y... View the full answer