Pribil Farm Equipment is a job-order costing manufacturer that uses a plantwide

Question

Pribil Farm Equipment is a job-order costing manufacturer that uses a plantwide overhead rate based on direct labor hours. Estimations for the year include $420,000 in Overhead and 30,000 direct labor hours. Pribil worked on five jobs in March. Data are as follows 2. Balance, 3/1 Direct Materials Direct Labor cost Job 89 Job 90 Job 91 $23,110 $18,240 9,510 13,000 Job 92 $0 Job 93 $0 8,210 17,210 22,900 15,240 8,07511,500 16,250 9,7504,860 2,3003,250 1,950 Direct Labor Hours By March 31, Jobs 89 and 91 were completed and sold at Cost plus 55%. The rest of the jobs remained in process. 1,615 972 Calculate the plantwide overhead rate A) Create Job Cost Reports for the month. B) Calculate the Work-in-Process on March 31 FG and COGS C) Income Statement for the Month of March

Explanation / Answer

Predetermined Overhed rate= Estimated Overhead/Estimated Direct Labor Hours = 420000/30000 = 14.00 per hour A) Job Costing Report Job 89 Job 90 Job 91 Job 92 Job 93 Opening balance 23110 18240 9510 0 0 Direct Materials 13000 17210 22900 15240 8210 Direct Labor 8075 11500 16250 9750 4860 Overhead 22610 32200 45500 27300 13608 (1615*14) (2300*14) (3250*14) (1950*14) (972*14) Total Costs 66795 79150 94160 52290 26678 B) Total Costs 66795 79150 94160 52290 26678 Completed and sold 66795 0 94160 0 0 Closing balance WIP 0 79150 0 52290 26678 COGS (66795+94160) 160955 Add: 55% markup 88525 Sales 249480 Since all other jobs are in progress value of finished goods is 0 C) Income Statement Sales 249480 Less: COGS 160955 Net Income 88525

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