Section A: Job Cost Sheet Calculations ASU Manufacturing Company designed indust

Question

Section A: Job Cost Sheet Calculations ASU Manufacturing Company designed industrial products for automobile companies. Estimated manufacturing overhead for the year 2018 was $800,000 and estimated direct labor hours were 100,000 hours. During March 2018, ASU worked on three jobs. Data related to these jobs are: Job #101 S50,000 18,000 Job #102 $40,000 24,000 Job #103 $30,000 12,000 Direct material cost Direct labor cost. The employees are paid $20 per hour and overhead is assigned based on direct labor hours. During March 2018, Job #101 and Job #102 were completed. Job #103 remains unfinished at the end of March. 1. Calculate the overhead rate based on direct labor hours. 2. what is the total cost of Job #101 and Job #102? 3. What is the balance in Work-in-Process Inventory at March 31? 4. What is the balance in Finished Goods Inventory at March 312

Explanation / Answer

)Overhead rate = Estimated overhead /estimated DLH

              = 800000/100000

              = $ 8 per DLH

2)

3)

Direct labor for job 103 :12000/20=600

Cost of WIP (job 103) =30000+12000+(600*8)

                30000+12000+4800

              = 46800

4)Balance in finished goods =Job 101 +Job 102

               = 75200+73600

                   = 148800

                  

101 102 Direct labor hours 18000/20=900 24000/20=1200 Direct material 50000 40000 direct labor 18000 24000 overhead 900*8= 7200 1200*8=9600 Total cost 75200 73600

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