BJenkins Company uses a job order cost system with overhead

BJenkins Company uses a job order cost system with overhead applied to jobs on the basis of direct labor hours. The direct labor rate is $20 per hour, and the predetermined overhead rate is $15 per direct labor hour. The company worked on three jobs during April. Jobs A and B were in process at the beginning of April. Job A was completed and delivered to the customer. Job B was completed during April, but not sold. Job C was started during April, but not completed. The job cost sheets revealed the following costs for April:

Required:
If no other jobs were started, completed, or sold, determine the balance in each of the following accounts at the end of April:

a.) Work in Process

b.) Finished Goods

c.) Cost of Goods Sold

	Job A	Job B	Job C
Cost of Jobs in Process, 4/1/2016	$	12,400		$	1,100		$	—
Direct Materials Used		2,400			8,800			10,200
Direct Labor		10,800			8,800			3,400
Applied Manufacturing Overhead		?			?			?

Solution

Job A Job B Job C Cost of Jobs in Process, 4/1/2016 12400 1100 - Direct Materials Used 2400 8800 10200 Direct Labor 10800 8800 3400 Applied Manufacturing Overhead (Note:1) 8100 6600 2550 Notes: 1 Job A Job B Job C Direct Labor a 10800 8800 3400 direct labor rate b 20 20 20 Direct Labor hours c=a/b 540 440 170 predetermined overhead rate d 15 15 15 Applied Manufacturing Overhead e=c*d 8100 6600 2550 a) Work-in-process Job A Job B Job C Beginning balance 12400 1100 Direct Materials Used 2400 8800 10200 Direct Labor 10800 8800 3400 Applied Manufacturing Overhead 8100 6600 2550 33700 25300 16150 Less:Jobs completed 33700 25300 0 0 0 16150 Balance in work-in-process=$16150 b) Finished goods Job A Job B Jobs completed 33700 25300 Less: Job sold 33700 0 0 25300 Balance in finished goods=$ 25300. c) Balance in cost of goods sold=Cost of Job Sold=Cost of Job A=$ 33700