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Job Costing with Predetermined Overhead Rate SnoBlo Company manufactures a variety of gasoline-powered snow blowers for discount hardware and department stores. SnoBlo uses a job cost system and treats each customers order as a separate job. The primary snow blower components (motors, chassis, and wheels) are purchased from three different suppliers under long-term contracts that call for the direct delivery of raw materials to the production floor as needed. When a customers order is received, a raw materials purchase order is electronically placed with suppliers. The purchase order specifies the scheduled date that production is to begin as the delivery date for motors and chassis; the scheduled date production is to be completed is specified as the delivery date for the wheels. As a consequence, there are no raw materials inventories; raw materials are charged directly to Work-in-Process upon receipt. Upon completion, goods are shipped directly to customers rather than transferred to finished goods inventory. At the beginning of July SnoBlo had the following work-in-process inventories:

Job 365 $48,000 Job 366 35,760 Job 367 36,720 Job 368 20,400 Total $140,880 During July, the following activities took place: Started Jobs 369, 370, and 371. Ordered and received the following raw materials for specified jobs: Job Motors Chassis Wheels Total 366 $ $- $1,920 $1,920 367 - 2,880 2.880 368 3,660 3,660 369 33,600 12,000 2.520 48,120 370 21,600 8,400 2,160 32,160 371 20,400 8,640 29,040 Total 575,600 $29,040 $13,140 5117,780 Incurred July manufacturing payroll: Direct labor Job 365 Job 366 Job 367 $2,940 9,120 7,800 9,960 Job 368 Job 369 Job 370 Job 371 Total Indirect labor 7,020 6,060 3,600 46,500 8,220 $54,720 Total Incurred additional manufacturing overhead costs for July: Manufacturing supplies purchased on account and used Depreciation on factory foxed assets Miscellaneous payables Total $6,840 14,160 11,400 $32.400 Applied manufacturing overhead using a predetermined rate based on predicted annual overhead of $486,000 and predicted annual direct labor of $540,000. Completed and shipped Jobs 365 through 370. Required Prepare a complete analysis of all activity in Work-in-Process (including job sheets), reconciling from the beginning to the ending balances. Note: Do not use a negative sign with any of your answers. Job 365 Job 366 Job 367 Job 369 Job 370 Job 371 Job 368 $ Total S 9 $ Beg. bal. Cur.costs Dir. mat. Dir. lab. Mfg. OH Total cost Work in Process Beg. Bal DM DL OH Less completed jobs End. Bal

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