At the beginning of June, Rhone Company had two jobs in process, Job 44 and Job 45,
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Question:
At the beginning of June, Rhone Company had two jobs in process, Job 44 and Job 45, with the following accumulated cost information:
Job 44 | Job 45 | |
Direct materials | $4,850 | $1,400 |
Direct labor | 800 | 2,800 |
Applied overhead | 560 | 1,960 |
Balance, June 1 | $6,210 | $6,160 |
During June, two more jobs (46 and 47) were started. The following direct materials and direct labor costs were added to the four jobs during the month of June:
Job 44 | Job 45 | Job 46 | Job 47 | |
Direct materials | $2,750 | $7,140 | $1,900 | $1,900 |
Direct labor | 760 | 6,360 | 860 | 600 |
At the end of June, Jobs 44, 45, and 47 were completed. Only Job 45 was sold. On June 1, the balance in Finished Goods was zero.
Required: | |
1. | Calculate the overhead rate based on direct labor cost. Round to three decimal places. |
2. | Prepare a brief job-order cost sheet for the four jobs. Show the balance as of June 1 as well as direct materials and direct labor added in June. Apply overhead to the four jobs for the month of June, and show the ending balances. |
3. | Calculate the ending balances of Work in Process and Finished Goods as of June 30. |
4. | Calculate the Cost of Goods Sold for June. |
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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