Dancer Corporation, which uses a job-costing system, had two jobs in process at
ID: 2561994 • Letter: D
Question
Dancer Corporation, which uses a job-costing system, had two jobs in process at the start of 2014:
Job 59 $ 95,000
Job 60 $ 39,500
WIP Inventory 1/1/14 $ 134,500
The company applies manufacturing overhead on the basis of machine hours. Budgeted overhead and machine activity for the year were anticipated to be $720,000 and 20,000 hours. · The company worked on three jobs during the first quarter and incurred the following costs:
Dancer completed Job 59 and Job 60 in the first quarter of 2014
b. [10 points] What is the cost of work-in-process inventory at the end of the quarter ?
c. [10 points] What is the cost of jobs completed during the first quarter ?
Job No Direct Material Direct Labor Machine Hours 59 $18,000 $45,000 900 60 ------- 25,000 600 61 37,000 35,000 1,200Explanation / Answer
Overhead absorption rate= Budgeted overhead cost/Budgeted machine hours
=$720,000/20000
=$36.
Answer for question no.b:
Given job no.59 and 60 are completed during the quarter and job no.61 is the only that is unfinished during the quarter, hence all the costs incurred for job 61 is the value of work in progress at the end of the quarter.
Work in process value at the end of the quarter:
Answer for question no.c:
Particulars Amount Direct material 37000 Direct labour 35000 Manufacturing overhead(1200hours*$36 per machine hour) 43200 Total WIP 115200Related Questions
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