Reference no: EM131719044
Question - Mandy's Makeovers produces antique reproduction furniture and uses a job order cost system The table below provides data on the tree jobs worked on in the company's first month of operations, March 2000.
Job 101: Job 102 Job 103
Units of product on the job: 40 20 15
Direct Labor Hours 500 300 90
Direct Materials 6,500 2,700 1,400
Direct Labor Cost 5,000 2,500 890
Factory overhead cost is applied to job orders on the basis of direct labor hours at a predetermined rate of $9 per hour. Jobs 101 and 102 were completed during the month, and Job 103 remained in work in process at the end of the month.
Instructions:
A. Compute the overhead to be applied to each job.
B. Compute the total cost of each job.
C. Compute the cost transferred to finished goods during the month and prepare the proper journal entry.
D. Compute the total ending work in process inventory.
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