During April, Sukanya experienced the transactions listed below. Required: 1. Ca

Question

During April, Sukanya experienced the transactions listed below.

Required:

1. Calculate the predetermined overhead rate based on direct labor cost.
% of direct labor cost

2. Calculate the ending balance for each job as of April 30.

3. Calculate the ending balance of Work in Process as of April 30.
$

4. Calculate the cost of goods sold for April.
$

5. Assuming that Sukanya prices its jobs at cost plus 20 percent, calculate the price of the one job that was sold during April. Round to the nearest dollar.

Explanation / Answer

1. 75% is correct for OH rate.

2. You don't need to know the ending Cash balance.

Set up a T account for each job. Total Beg Balance should equal 22,605, WIP.
Then post those transactions that debited or credited each job.

Since you don't need the ending balance in Materials or Finished Goods, or over/underapplied overhead, you can ignore those tranactions.

But the data you show for 3 jobs, #1, 2,& 3, don't relate to the April transactions to jobs 114, 115 & 116. Are they in fact the same jobs? Strange.

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