Answer:
Explanation:
1. To determine each Job total costs
Job 306
1.
Opening Direct Material = $30,000
Add Input to production = $139,000
Total Inventory usage = $169,000
2.
Payroll opening balance = $23,000
April payroll = $103,000
Total payroll = $126,000
3.
Overhead opening = $11,500
April Overhead 50% of $103,000 = $51,500
Total Overhead = $63,000
Total costs of 306 = 1 + 2 + 3 = $358,000
**allocate Overhead by Raw Material usage:
Apr direct material for 306 divided by total April direct material x total April Overhead
= 139,000 / 454,000 x $191,000
= $58,478
(We have over applied Overhead by $4,522 using the 50% predetermined rate rule)
Job 307
1.
Opening Direct Material = $41,000
Add Input to production = $200,000
Total Inventory usage = $241,000
2.
Payroll opening balance = $16,000
April payroll = $150,000
Total payroll = $166,000
3.
Overhead opening = $8,000
April Overhead 50% of $150,000 = $75,000
Total Overhead = $83,000
Total costs of 307 = 1 + 2 + 3 = $490,000
**allocate Overhead by Raw Material usage:
Apr direct material for 307 divided by total April direct material x total April Overhead
= 200,000 / 454,000 x $191,000
= $84,141
(We have over applied Overhead by $1,141 using the 50% predetermined rate rule)
Job 308
1.
Opening Direct Material = $0
Add Input to production = $115,000
Total Inventory usage = $115,000
2.
Payroll opening balance = $0
April payroll = $104,000
Total payroll = $104,000
3.
Overhead opening = $0
April Overhead 50% of $104,000 = $52,000
Total Overhead = $52,000
Total costs of 308 to work in progress = 1 + 2 + 3 = $271,000
**allocate Overhead by Raw Material usage:
Apr direct material for 308 divided by total April direct material x total April Overhead
= 115,000 / 454,000 x $191,000
= $48,381
(We have over applied Overhead by $3,619 using the 50% predetermined rate rule)
B.
1. Sales of Job 306 = $690,000
Transfer of costs to Finished Goods : Job 306 = $358,000
Add Adjustments for Overhead over applied = -$4,522
Cost of sales = $353,478
2.
Sales of Job 307 = not yet sold
Transfer of costs to Finished Goods : Job 307 = $490,000
Add Adjustments for Overhead over applied = -$1,141
Cost of goods available for sales = $488,859
3. Sales of Job 308 = still work in progress
Transfer of costs to work in progress : Job 308 = $271,000
Add Adjustments for Overhead over applied = -$3,619
Cost of Work in progress = $267,381
