Job-Order Cost Sheets, Balance in Work in Process and Finished Goods Prull Compa

Question

Job-Order Cost Sheets, Balance in Work in Process and Finished Goods

Prull Company, a job-order costing firm, worked on three jobs in July. Data are as follows:

Overhead is applied to jobs at the rate of $17 per machine hour. By July 31, Jobs 86 and 88 were completed. Jobs 82 and 86 were sold. Job 87 remained in process. On July 1, the balance in Finished Goods was $49,010 (consisting of Job 82 for $25,580 and Job 84 for $23,430).

Prull prices its jobs at cost plus 30%. During July, variable marketing expenses were 4% of sales, and fixed marketing expenses were $2,020; administrative expenses were $4,800. (Round all amounts to the nearest dollar.)

Job 86 Job 87 Job 88 Balance, July 1 $21,370 $6,280 $0 Direct materials $10,510 $12,350 $16,190 Direct labor $16,040 $12,240 $24,030 Machine hours 500 290 980

Explanation / Answer

Prepare job-order cost sheets for all jobs in process during July, showing all costs through July 31.

Calculate the balance in Work in Process on July 31.

Work in Process = Job 87 = 35,800

Calculate the balance in Finished Goods on July 31.

Calculate Cost of Goods Sold for July.

Calculate operating income for Prull Company for the month of July.

Job 86 Job 87 Job 88 Balance, July 1 $21,370 $6,280 $0 Direct materials $10,510 $12,350 $16,190 Direct labor $16,040 $12,240 $24,030 Overhead (Hour *Rate) $8,500 $4,930 $16,660 Total $56,420 $35,800 $56,880

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.