Prepare JobOrder Cost Sheets Predetermined Overhead Rate End

Prepare Job-Order Cost Sheets, Predetermined Overhead Rate, Ending Balance of WIP, Finished Goods, and COGS At the beginning of June, Rhone Company had two jobs in process, Job 44 and Job 45, with the following accumulated cost information:

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:

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.

Calculate the Cost of Goods Sold for June.

PLEASE CHECK MY ANSWER FIRST SINCE I KNEW THERE are LOTS OF MISTAKEs AND Correct THEM!!!

THANK YOU!!!!

	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. PLEASE CHECK MY ANSWER FIRST SINCE I KNEW THERE are LOTS OF MISTAKEs AND Correct THEM!!! THANK YOU!!!!

Job 44 Job 45 Direct materials $5,100$1,500 1,200 3,000 Applied overhead 780 1,950 Balance, June 1 $7,080 $6,450 Direct labor

Solution

1. Predetermine overhead rate :

Predetermine overhead rate = 780*100/1200 = 65%

2. Prepare job order sheet :

3. Work in process = Job 46 = 3285

Finished goods inventory = (10900+2624) = 13524

4. Cost of goods sold = 24120

	Job 44	Job 45	Job 46	Job 47
Beginning balance	7080	6450	0	0
Direct material	2500	7110	1800	1700
Direct labour	800	6400	900	560
Applied overhead	520	4160	585	364
Total cost	10900	24120	3285	2624