Question:
PREDETERMINED OVERHEAD RATE, APPLICATION OF OVERHEAD TO JOBS, JOB COST, UNIT COST On June 1, Dabo Company's work-in-process inventory consisted of three jobs with the following costs:
|
Job 70
|
Job 71
|
Job 72
|
|
Direct materials
|
$1,600
|
$2,000
|
$850
|
|
Direct labor
|
1,900
|
1,300
|
900
|
|
Applied overhead
|
1,425
|
975
|
675
|
During June, four more jobs were started. Information on costs added to the seven jobs during June is as follows:
|
|
Job 70
|
Job 71
|
Job 72
|
Job 73
|
Job 74
|
Job 75
|
Job 76
|
|
Direct materials
|
$ 800
|
$1,235
|
$3,550
|
$5,000
|
$300
|
$560
|
$ 80
|
|
Direct labor
|
1,000
|
1,400
|
2,200
|
1,800
|
600
|
860
|
172
|
Before the end of June, Jobs 70, 72, 73, and 75 were completed. On June 30, Jobs 72 and 75 were sold.
Required:
1. Calculate the predetermined overhead rate based on direct labor cost.
2. Calculate the ending balance for each job as of June 30.
3. Calculate the ending balance in Work-in-Process Inventory as of June 30.
4. Calculate the cost of goods sold for June.
5. Assuming that Dabo prices its jobs at cost plus 20 percent, calculate Dabo's sales revenue for June.