Required information Problem 3-45 Job-Order Costing; Journal Entries (LO 3-2, 3-

Question

Required information Problem 3-45 Job-Order Costing; Journal Entries (LO 3-2, 3-4, 3-5) [The following information applies to the questions displayed below.] Stellar Sound, Inc. which uses a job-order costing system, had two jobs in process at the start of 20x1: job no. 64 ($84,100) and job no. 65 ($53,400). The following information is available a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year were anticipated to be $824,000, and 16,000 hours, respectively. b. The company worked on four jobs during the first quarter. Direct materials used, direct labor incurred, and machine hours consumed were as follows: Direct Direct Machine Job No. Material Labor Hours 64 $21,000 $35,000 1,200 700 44,000 65,000 2,000 500 65 - 22,000 15,000 8,800 c. Manufacturing overhead during the first quarter included charges for depreciation ($32,900), indirect labor ($60,000), indirect materials used ($5,000), and other factory costs ($139,700) d. Stellar Sound completed job no. 64 and job no. 65. Job no. 65 was sold on account, producing a profit of $34,800 for the firm Problem 3-45 Part 3 Required: 3. Determine the cost of jobs still in production as of March 31. (Round your answer to 2 decimal places.) Cost of the jobs in production

Explanation / Answer

Predetermined overhead rate = 824000/16000=51.5 Job 66 Job 67 Direct materials 44000 15000 Direct labor 65000 8800 Overhead 103000 25750 Total 212000 49550 Cost of jobs in production=212000+49550=261550

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