Answer:
See below
Explanation:
1. Predetermined overhead rates
= Applied overhead / Direct labor
Job 114
Applied overhead / direct labor
= $1,260/1,800
= 70%
Job 115
Applied overhead / direct labor
= $994/1,420
= 70%
Job 116
Applied overhead / direct labor
= $3,094/4,420
= 70%
2 and 3 Ending balance of each job and work in process as of April 30th.
Job 114. Job116
Opening. $2,384. $3,085
Materials
Purchases $16,800. $5,410
Direct labor
($1,800+$1,800) $3,600. $5,740
Actual $2,520 $4,018
Overhead
at 59.36%
Balance $25,304. $18,253
• Note
The whole of job 115 has been sold out.
• Actual overhead = Actual overhead / direct labor
= $4,535/7,640
= 59.36%
4 Cost of goods sold in April
Job 115
Opening materials. $2,603
Purchases. $12,460
Direct labor
($1,420 + $3,080). $4,500
Actual overhead. $3,150
at 59.36%
Cost of goods sold $22,713
5. Selling price of job
Cost of job 115 = $22,713
Selling price = 1.25% × $22,713 = $28,391
