Activity$-$Based Costing, Unit Cost, Ending Work$-$in$-$Process Inventory

Salazar Company is a job$-$order costing firm that uses activity$-$based costing to apply overhead to jobs. Salazar identified three overhead activities and related drivers. Budgeted information for the year is as follows:

Activity Cost Driver Amount of Driver

Setting up design $$156,000$ Setups $1,200$

Purchasing $186,000$ Number of parts $15,000$

Other overhead $415,000$ Direct labor hours $50,000$

Salazar worked on five jobs in March. Data are as follows:

Job $15$ Job $16$ Job $17$ Job $18$ Job $19$

Balance, March $1$ $$34,500$ $$39,890$ $$24,090$ $$0$ $$0$

Direct materials $$28,000$ $$37,900$ $$25,350$ $$11,000$ $$13,580$

Direct labor $$10,000$ $$8,500$ $$23,000$ $$12,700$ $$8,000$

Setups $201435815$

Number of parts $150180200500300$

Direct labor hours $6505801,600870520$

By March $31,$ Jobs $15,16,$ and $17$ were completed and sold. The remaining jobs were in process.

Required:

Question Content Area

$1.$ Calculate the activity rates for each of the three overhead activities. If required, round your answers to the nearest cent.

Setup rate $fill in the blank $04084$bf$44$feff$87\_1$ per set up

Purchasing rate $fill in the blank $04084$bf$44$feff$87\_2$ per part

Other overhead rate $fill in the blank $04084$bf$44$feff$87\_3$ per direct labor hour

Question Content Area

$2.$ Prepare job$-$order cost sheets for each job showing all costs through March $31.$ What is the cost of each job by the end of March?. If an amount is zero, enter $"0".$

Salazar Company

Job$-$Order Cost Sheets

blank

Job $15$ Job $16$ Job $17$ Job $18$ Job $19$

Balance, March $1$ $fill in the blank fe$08370$b$003$df$9$b$\_1$ $fill in the blank fe$08370$b$003$df$9$b$\_2$ $fill in the blank fe$08370$b$003$df$9$b$\_3$ $fill in the blank fe$08370$b$003$df$9$b$\_4$ $fill in the blank fe$08370$b$003$df$9$b$\_5$

Direct materials fill in the blank fe$08370$b$003$df$9$b$\_6$ fill in the blank fe$08370$b$003$df$9$b$\_7$ fill in the blank fe$08370$b$003$df$9$b$\_8$ fill in the blank fe$08370$b$003$df$9$b$\_9$ fill in the blank fe$08370$b$003$df$9$b$\_10$

Direct labor fill in the blank fe$08370$b$003$df$9$b$\_11$ fill in the blank fe$08370$b$003$df$9$b$\_12$ fill in the blank fe$08370$b$003$df$9$b$\_13$ fill in the blank fe$08370$b$003$df$9$b$\_14$ fill in the blank fe$08370$b$003$df$9$b$\_15$

Applied overhead:

Setups fill in the blank fe$08370$b$003$df$9$b$\_16$ fill in the blank fe$08370$b$003$df$9$b$\_17$ fill in the blank fe$08370$b$003$df$9$b$\_18$ fill in the blank fe$08370$b$003$df$9$b$\_19$ fill in the blank fe$08370$b$003$df$9$b$\_20$

Purchasing fill in the blank fe$08370$b$003$df$9$b$\_21$ fill in the blank fe$08370$b$003$df$9$b$\_22$ fill in the blank fe$08370$b$003$df$9$b$\_23$ fill in the blank fe$08370$b$003$df$9$b$\_24$ fill in the blank fe$08370$b$003$df$9$b$\_25$

Other overhead fill in the blank fe$08370$b$003$df$9$b$\_26$ fill in the blank fe$08370$b$003$df$9$b$\_27$ fill in the blank fe$08370$b$003$df$9$b$\_28$ fill in the blank fe$08370$b$003$df$9$b$\_29$ fill in the blank fe$08370$b$003$df$9$b$\_30$

Total cost $fill in the blank fe$08370$b$003$df$9$b$\_31$ $fill in the blank fe$08370$b$003$df$9$b$\_32$ $fill in the blank fe$08370$b$003$df$9$b$\_33$ $fill in the blank fe$08370$b$003$df$9$b$\_34$ $fill in the blank fe$08370$b$003$df$9$b$\_35$

Question Content Area

$3.$ Calculate the balance in Work in Process on March $31.$

$fill in the blank a$2$fbc$9$fc$0045063\_1$

$4.$ Calculate the cost of goods sold for March.

$fill in the blank a$2$fbc$9$fc$0045063\_2$