Predetermined Overhead Rate, Application of Overhead to Jobs,Job Cost
On April 1, Sangvikar Company had the following balances in itsinventory accounts:
| Materials Inventory | $12,550 |
| Work-in-Process Inventory | 21,340 |
| Finished Goods Inventory | 8,900 |
Work-in-process inventory is made up of three jobs with thefollowing costs:
| Job 114 | Job 115 | Job 116 |
| Direct materials | $2,436 | $2,660 | $4,484 |
| Direct labor | 1,860 | 1,480 | 4,500 |
| Applied overhead | 930 | 740 | 2,250 |
During April, Sangvikar experienced the transactions listedbelow.
- Materials purchased on account, $28,670.
- Materials requisitioned: Job 114, $16,270; Job 115, $12,370;and Job 116, $5,000.
- Job tickets were collected and summarized: Job 114, 160 hoursat $11 per hour; Job 115, 220 hours at $14 per hour; and Job 116,70 hours at $19 per hour.
- Overhead is applied on the basis of direct labor cost.
- Actual overhead was $4,280.
- Job 115 was completed and transferred to the finished goodswarehouse.
- Job 115 was shipped, and the customer was billed for 125percent of the cost.
Required: (Can you please show detail calculations forsolution for the answer)
1. Calculate the predetermined overhead rate based ondirect labor cost.
% of direct labor cost
2. Calculate the ending balance for each job as of April30. When required, round your answers to the nearest dollar. Useyour rounded answers in subsequent computations, ifnecessary.
| Ending Balance |
|
| Job 114 | $ |
| Job 115 | $ |
| Job 116 | $ |
3. Calculate the ending balance of Work in Process as ofApril 30. When required, round your answer to the nearest dollar.(Can you please show detail calculations for solution for theanswer)
$ _________
4. Calculate the cost of goods sold for April. Whenrequired, round your answer to the nearest dollar. (Can you pleaseshow detail calculations for solution)
$ __________
5. Assuming that Sangvikar prices its jobs at cost plus25 percent, calculate the price of the one job that was sold duringApril. Round to the nearest dollar. (Can you please show detailcalculations for solution)
$________
