E21 Posting Direct Materials Direct Labor and Applied Overhe

E2-1 Posting Direct Materials, Direct Labor, and Applied Overhead to T.-Accounts, Calculating Ending Balances LO 2-2,2-3, 24] Oak Creek Fumiture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer ander. On March 1, OCFF had two jobs in process with the following costs: Work in Process Job 33 Job 34 S 6,300 8,800 Source documents revealed the following during March: Materials Requisitions Labor Time Forms llTickets Status of Job at Month-End Job 33 $ 3,900 S5,800 Completed and sold Job 343.900 Job 35 4,800 3,500 Completed, but not sold In process 4,200 1.400 S 13,400 Indirest S 15.600

Solution

1 Job 33 Job 34 Job 35 Beg. Work in progress 5300 3500 Material 3900 3900 4200 Labor 5600 4600 3500 Manufacturing overheads (60% of labor) 3360 2760 2100 Total manufacturing cost 18160 14760 9800 2 Work in progress inventory 9800 Job 35 Finished goods inventory 14760 Job 34 Cost of goods sold 18160 Job 33