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cost ch 5

# cost ch 5 - 57 1 Using Job 30(any of the three jobs could...

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5–7 1. Using Job 30 (any of the three jobs could be used, the overhead rate will be the same): Predetermined overhead rate = \$1,520/\$1,900 = 0.80, or 80% of direct labor cost 2. Job 30 Job 31 Job 32 Balance, March 1 ................ \$ 6,070 \$ 4,312 \$ 10,850 Direct materials .................. 12,500 11,200 5,500 Direct labor ......................... 3,000 4,125 2,800 Applied overhead ................ 2,400 3,300 2,240 Total ............................. \$ 23,970 \$ 22,937 \$ 21,390 3. Ending Work in Process consists of Jobs 30 and 32 Job 30 .................................. \$ 23,970 Job 32 ................................... 21,390 Ending WIP ................. \$ 45,360 4. Cost of goods sold = Job 31 = \$22,937 5. Price of Job 31 = \$22,937 × 1.3 = \$29,818 (rounded)

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5–12 1. Job 43: Direct materials ........................ \$ 744 Direct labor ............................... 1,980 Overhead ................................... 1,908 (\$5.30 × 360) \$ 4,632 Unit cost = \$4,632/120 = \$38.60 Job 44: Direct materials ........................ \$ 640 Direct labor ............................... 2,480 Overhead .................................. 2,120 (\$5.30 × 400) \$ 5,240 Unit cost = \$5,240/200 = \$26.20 2. Ending work in process (Job 45): Direct materials ........................ \$ 600 Direct labor ............................... 1,240 Overhead .................................. 1,060 (\$5.30 × 200) \$ 2,900 3. Finished Goods ........................................ 9,872* Work in Process .............................. 9,872 *4,632 + 5,240 = 9,872. Cost of Goods Sold .................................. 5,240 Finished Goods ................................ 5,240 Accounts Receivable ............................... 7,336** Sales Revenue .................................. 7,336 **5,240 × 140% = 7,336.
5–19 1. Bid prices with plantwide rate: Plantwide rate = \$2,500,000/250,000 = \$10 per direct labor hour Job 97-28 Job 97-35 Prime costs .................................................. \$ 120,000 \$ 50,000 Overhead ..................................................... 60,000 * 10,000 * Total costs ............................................ \$ 180,000 \$ 60,000 Markup (50%) ............................................ 90,000 30,000 Total bid revenues ............................... \$ 270,000 \$ 90,000 Units ............................................................ ÷ 14,400 ÷ 1,500 Unit bid price ....................................... \$ 18.75 \$ 60.00 *(6,000 × \$10); (1,000 × \$10).

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