The following is a list of 3 jobs Ross Co. worked on during the year: Job B1 Job

Question

The following is a list of 3 jobs Ross Co. worked on during the year:

Job B1

Job O1

Job B2

Prime costs

$4292

$7418

$8317

Manufacturing overhead

?

?

?

Bob applies overhead at a rate of 62 % of prime costs. Job O1 and B2 were completed during the year and job O1 was sold. Which of the following is true:

Select one:

a. The balance in the work in process account is $20027

b. The balance in the finished goods account is $25491

c. The balance in the work in process account is $6953 and the cost of goods sold is $12017

d. The balance in the finished goods account is $6953 and the work in process is $20027

At the beginning of the year 20x5, Marsha Co. had a balance of $211366 in work in process, represented by the following two jobs:

Job A

Job B

Direct materials

$13516

$25430

Direct labour

$21097 (1793 hours)

$28030 (5036 hours)

$34613

$53460

Marsha Co. applies overhead based on direct labour costs. How much overhead was applied to Job B?

Select one:

a. $52947

b. $90922

c. $70346

d. $157906

Job B1

Job O1

Job B2

Prime costs

$4292

$7418

$8317

Manufacturing overhead

?

?

?

Explanation / Answer

1 Job B1 Job O1 Job B2 Prime costs 4292 7418 8317 Overhead rate 62% 62% 62% Overhead applied 2661 4599 5157 Total cost 6953 12017 13474 The balance in the work in process account is $6953 and the cost of goods sold is $12017 Option C is correct 2 Total overhead applied = 211366-34613-53460= $123293 Overhead rate = 123293/(21097+28030)= $2.5097 Overhead applied to Job B = 28030*2.5097= $70346 Option C is correct

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