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Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost, Unit Cost On August 1,...

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Accounting

Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost, Unit Cost

On August 1, Cairle Companys work-in-process inventory consisted of three jobs with the following costs:

Job 70 Job 71 Job 72
Direct materials $1,600 $2,000 $850
Direct labor 1,900 1,300 900
Applied overhead 1,425 975 675

During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows:

Job 70 Job 71 Job 72 Job 73 Job 74 Job 75 Job 76
Direct materials $800 $1,235 $3,550 $5,000 $300 $560 $80
Direct labor 1,000 1,400 2,200 1,800 600 860 172

Before the end of August, Jobs 70, 72, 73, and 75 were completed. On August 31, Jobs 72 and 75 were sold.

Required:

1. Calculate the predetermined overhead rate based on direct labor cost. % of direct labor cost.

2. Calculate the ending balance for each job as of August 31.

Ending Balance
Job 70 $
Job 71 $
Job 72 $
Job 73 $
Job 74 $
Job 75 $
Job 76 $

3. Calculate the ending balance of Work in Process as of August 31. $

4. Calculate the cost of goods sold for August. $

5. Assuming that Cairle prices its jobs at cost plus 20 percent, calculate Cairles sales revenue for August. $

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