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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.
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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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