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Exercise 5.12 (Algorithmic) Predetermined Overhead Rate, Application of Overhead

ID: 2504422 • Letter: E

Question

Exercise 5.12 (Algorithmic)

Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost

On April 1, Sangvikar Company had the following balances in its inventory accounts:

Work-in-process inventory is made up of three jobs with the following costs:

During April, Sangvikar experienced the transactions listed below.

Required:

1. Calculate the predetermined overhead rate based on direct labor cost.

% of direct labor cost

2. Calculate the ending balance for each job as of April 30. When required, round your answers to the nearest dollar. Use your rounded answers in subsequent computations, if necessary.

3. Calculate the ending balance of Work in Process as of April 30. When required, round your answer to the nearest dollar.

$

4. Calculate the cost of goods sold for April. When required, round your answer to the nearest dollar.

$

5. Assuming that Sangvikar prices its jobs at cost plus -25 percent, calculate the price of the one job that was sold during April. Round to the nearest dollar.

$


Explanation / Answer

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