general corporation employs a job order cost system on may 1 the following balances 502389 | Homework Solutions
Computations using a job order system
General Corporation employs a job order cost system. On May 1 the following balances were extracted from the general ledger;
|
Work in process |
$35,200 |
|
Finished goods |
86,900 |
|
Cost of goods sold |
128,700 |
Work in Process consisted of two jobs, no. 101 ($20,400) and no. 103 ($14,800). During May, direct materials requisitioned from the storeroom amounted to $96,500, and direct labor incurred totaled $114,500. These figures are subdivided as follows:
Document*
Date
Department
Hours
Amount
MR 1165
19-Mar
Machining
$5,600
MR 1169
21-Mar
Machining
3,500
TT 1450-52
23-Mar
Machining
45
400
MUR 46
23-Mar
Machining
105
MR 4330
27-Mar
Finishing
700
TT 1475-76
31-Mar
Machining
30
300
MUR 47
31-Mar
Machining
50
TT 6608-13
31-Mar Finishing
200
2,000
Job no. 115 was the only job in process at the end of the month. Job no. 101 and three “”other”” jobs were sold during May at a profit of 20% of cost. The “”other”” jobs contained material and labor charges of $21,000 and $17,400, respectively
General applies overhead daily at the rate of 150% of direct labor cost as labor summaries are posted to job orders. The firm’s fiscal year ends on May 31.
Instructions:
Compute the total overhead applied to production during May. Compute the cost of the ending work in process inventory. Compute the cost of jobs completed during May. Compute the cost of goods sold for the year ended May 31.
