Figure 5-14
Deluxe Design Company makes custom furniture.On December 1,there were two jobs in process,Job 683,with a cost of $14,200 and Job 684 with a cost of $23,500.Jobs 685,686,and 687 were started during the month of December.Data on costs added during the month are as follows:
Overhead is applied to production at the rate of 80% of direct labor cost.Job 685 was completed on December 17.Job 684 was completed on December 21 and the client was billed at cost plus 45%.All other jobs remained in process.
Refer to Figure 5-14.
Required:
A.)Determine the amount of overhead to apply to each job for the period.
B.)Calculate the cost of work-in-process at the end of the month.
C.)Calculate the cost of finished goods,assuming that finished goods inventory on December 1st was zero.

Question

Figure 5-14
Deluxe Design Company makes custom furniture.On December 1,there were two jobs in process,Job 683,with a cost of $14,200 and Job 684 with a cost of $23,500.Jobs 685,686,and 687 were started during the month of December.Data on costs added during the month are as follows:
  Overhead is applied to production at the rate of 80% of direct labor cost.Job 685 was completed on December 17.Job 684 was completed on December 21 and the client was billed at cost plus 45%.All other jobs remained in process.
Refer to Figure 5-14.
Required: 
A.)Determine the amount of overhead to apply to each job for the period.
B.)Calculate the cost of work-in-process at the end of the month.
C.)Calculate the cost of finished goods,assuming that finished goods inventory on December 1st was zero.

Quizplus · Accepted Answer

The Answer of Figure 5-14
Deluxe Design Company makes custom furniture.On December 1,there were two jobs in process,Job 683,with a cost of $14,200 and Job 684 with a cost of $23,500.Jobs 685,686,and 687 were started during the month of December.Data on costs added during the month are as follows:
  Overhead is applied to production at the rate of 80% of direct labor cost.Job 685 was completed on December 17.Job 684 was completed on December 21 and the client was billed at cost plus 45%.All other jobs remained in process.
Refer to Figure 5-14.
Required: 
A.)Determine the amount of overhead to apply to each job for the period.
B.)Calculate the cost of work-in-process at the end of the month.
C.)Calculate the cost of finished goods,assuming that finished goods inventory on December 1st was zero.

Figure 5-14 Deluxe Design Company Makes Custom Furniture.On December 1,there Were Two