Prepare Job-Order Cost Sheets, Predetermined Overhead Rate, Ending Balance of WI

Question

Prepare Job-Order Cost Sheets, Predetermined Overhead Rate, Ending Balance of WIP, Finished Goods, and COGS At the beginning of June, Rhone Company had two jobs in process, Job 44 and Job 45, with the following accumulated cost information:

During June, two more jobs (46 and 47) were started. The following direct materials and direct labor costs were added to the four jobs during the month of June:

At the end of June, Jobs 44, 45, and 47 were completed. Only Job 45 was sold. On June 1, the balance in Finished Goods was zero.

Calculate the Cost of Goods Sold for June.

PLEASE CHECK MY ANSWER FIRST SINCE I KNEW THERE are LOTS OF MISTAKEs AND Correct THEM!!!

THANK YOU!!!!

Required: 1. Calculate the overhead rate based on direct labor cost. Round to three decimal places. 2. Prepare a brief job-order cost sheet for the four jobs. Show the balance as of June 1 as well as direct materials and direct labor added in June. Apply overhead to the four jobs for the month of June, and show the ending balances. 3. Calculate the ending balances of Work in Process and Finished Goods as of June 30. 4.

Calculate the Cost of Goods Sold for June.

PLEASE CHECK MY ANSWER FIRST SINCE I KNEW THERE are LOTS OF MISTAKEs AND Correct THEM!!!

THANK YOU!!!!

Job 44 Job 45 Direct materials $5,100$1,500 1,200 3,000 Applied overhead 780 1,950 Balance, June 1 $7,080 $6,450 Direct labor

Explanation / Answer

1. Predetermine overhead rate :

Predetermine overhead rate = 780*100/1200 = 65%

2. Prepare job order sheet :

3. Work in process = Job 46 = 3285

Finished goods inventory = (10900+2624) = 13524

4. Cost of goods sold = 24120

Job 44 Job 45 Job 46 Job 47 Beginning balance 7080 6450 0 0 Direct material 2500 7110 1800 1700 Direct labour 800 6400 900 560 Applied overhead 520 4160 585 364 Total cost 10900 24120 3285 2624

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