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Job costing:

Find the OH rate

Compute total cost for each job that was completed in February. Note that you will have t update the costs for Job 408.

Compute the cost or each job that remains in WIP at the end of February.

Compute the balances in the three inventory accounts of WWL as of the end of February.

Compute overhead over or under applied.

Winter Wonderland produces items that are sold all over the world. The firm uses a job order costing system and applies overhead on the basis of direct materials dollars. The policy is to use the same overhead rate throughout the year. The overhead account is closed to COGS ona monthly basis. At the end of January, 2018 WWL had direct materials inventory of $34,000. Finished goods inventory contained $1,456,000. WIP contained 2 jobs: Job 408 and Job 891. The costs of these jobs at the end of January was as follows: DM DL Job 408 $23,500 9,600 127.605 S160,705 Job 891 $86,300 10,600 468.609 $565,509 During February, the following events occurred: Job 408 was completed. An additional $19,500 was added in DM and $4,600 in DL. Job 408 contains 150 units. Total unit sales were 2,560. The average cost per unit was $950 and total sales amounted to $6,785,000. . .Purchases of direct materials totaled $160,000. . Three jobs were begun. Job 101 and Job 309 were completed. At the end of February Job 534 remained in process. Costs for these jobs added during February were Job 101 $45,400 7,000 Job 309 $66,600 Job 534 $39,000 2,400 DM DL 12,500 Job 891, which is not a high-priority job, was not completed. However, an additional S12,000 in DM and $2,300 in DL was added to that job. It was determined that actual overhead for the month was $957,300. 1. Focus on Job 408. From that information work backward to find the OH rate. 2. Compute the total cost for each job that was completed in February. Note that you will have to update the costs for Job 408. 3. Compute the cost for each job that remains in WIP at the end of February 4. Compute the balances in the three inventory accounts of WWL as of the end of February. 5. Compute overhead over or under applied. does the amount in Off over or under applied tell you? What should be done about it

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