Problem
Jenkins 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:
|
|
Job A
|
Job B
|
Job C
|
|
Cost of Jobs in Process, 4/1/2013
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$12,000
|
$ 1,000
|
$ -
|
|
Direct Materials Used
|
2,000
|
8,000
|
9,000
|
|
Direct Labor
|
10,000
|
8,000
|
3,000
|
|
Applied Manufacturing Overhead
|
2
|
2
|
2
|
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