Oak Creek Fumiture Factory OCFF a custom furniture manufactu

Oak Creek Fumiture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, OCFF had two jobs in process with the following costs: Work in Process Balance on 3/1 S 7,500 Job 33 Job 34 6,000 S13,500 Source documents revealed the following during March: Materials Requisitions Labor Time Forms Tickets Status of Job at Month-End Job 33 Job 34 Job 35 3,500 6,500 Completed and sold 6,000 4,200 1,300 7,800 3,250 Completed, but not sold In process $ 15,000 19,690 The company applies overhead to products at a rate of 150 percent of direct labor cost. Required 1. Compute the cost of Jobs 33, 34, and 35 at the end of the month. Total Manufacturing Cost Job 33 Job 34 Job 35

Solution

1 Total manufacturing cost: Job 33 27250 =7500+3500+6500+(6500*150%) Job 34 31500 =6000+6000+7800+(7800*150%) Job 35 12325 =4200+3250+(3250*150%) 2 Work in Process inventory 12325 Finished goods inventory 31500 Cost of goods sold 27250