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Applying Overhead to Jobs, Costing Jobs

Gorman Company builds internal conveyor equipment to client specifications. On October 1, Job 877 was in process with a cost of $18,590 to date.

During October, Jobs 878, 879, and 880 were started. Data on costs added during October for all jobs are as follows:

	Job 877	Job 878	Job 879	Job 880
Direct materials	$14,450	$6,070	$3,470	$1,820
Direct labor	15,600	8,000	1,500	2,000

Overhead is applied to production at the rate of 75% of direct labor cost. Job 877 was completed on October 28, and the client was billed at cost plus 50%. All other jobs remained in process.

Required:

1. Prepare a brief job-order cost sheet showing the October 1 balances of all four jobs, plus the direct materials and direct labor costs during October. There is no need to calculate applied overhead at this point or to total the costs. All amount cells must have an entry; enter zeros as needed.

Gorman Company
Job-Order Cost Sheets
For the Month of October
	Job 877	Job 878	Job 879	Job 880
Beginning balance	$fill in the blank c3ccdffb4069012_1	$fill in the blank c3ccdffb4069012_2	$fill in the blank c3ccdffb4069012_3	$fill in the blank c3ccdffb4069012_4
Direct materials	fill in the blank c3ccdffb4069012_5	fill in the blank c3ccdffb4069012_6	fill in the blank c3ccdffb4069012_7	fill in the blank c3ccdffb4069012_8
Direct labor	fill in the blank c3ccdffb4069012_9	fill in the blank c3ccdffb4069012_10	fill in the blank c3ccdffb4069012_11	fill in the blank c3ccdffb4069012_12

2. Calculate the overhead applied to each job during October.

The overhead applied to Job 877 is $fill in the blank d380c0f86ff6f84_1.

The overhead applied to Job 878 is $fill in the blank d380c0f86ff6f84_2.

The overhead applied to Job 879 is $fill in the blank d380c0f86ff6f84_3.

The overhead applied to Job 880 is $fill in the blank d380c0f86ff6f84_4.

3. Calculate the balance in Work in Process on October 31.

The balance in Work in Process for Job 878 is $fill in the blank d380c0f86ff6f84_5.

The balance in Work in Process for Job 879 is $fill in the blank d380c0f86ff6f84_6.

The balance in Work in Process for Job 880 is $fill in the blank d380c0f86ff6f84_7.

The total balance in Work in Process is $fill in the blank d380c0f86ff6f84_8.

4. What is the price of Job 877? The price of Job 877 is $fill in the blank d380c0f86ff6f84_9.

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