Rally Point Inc. designs and builds volleyball gymnasiums. Each gymnasium is custom-built to an individual customer's specifications. Rally Point uses job-order costing to track its costs. In January, Rally Point worked on three jobs. Data for these jobs are as follows:
Overhead is applied to jobs at the rate of $25 per machine hour. By January 31, Job 200 is the only job unfinished. The balance of finished goods on January 1 is $63,290 (consisting of Job 100 only). Jobs 100 and 300 are sold during January. Rally Point sells its product at cost plus 40%.
$\begin{array}{lrrrr}&\text { Job } 100&\text { Job } 200&\text { Job } 300\
\text { Balance } 1 / 1 & \$ 13,790 & \$ 0 & \$ 0 \
\text { Direct Materials } & 16,200 & 8,500 & 30,500 \
\text { Direct Labour Cost } & 23,300 & 7,600 & 45,000 \
\text { Machine Hours } & 400 & 300 & 2,000
\end{array}$
-Refer to the Figure.What is the sales revenue for January?

Question

Rally Point Inc. designs and builds volleyball gymnasiums. Each gymnasium is custom-built to an individual customer's specifications. Rally Point uses job-order costing to track its costs. In January, Rally Point worked on three jobs. Data for these jobs are as follows:
Overhead is applied to jobs at the rate of $25 per machine hour. By January 31, Job 200 is the only job unfinished. The balance of finished goods on January 1 is $63,290 (consisting of Job 100 only). Jobs 100 and 300 are sold during January. Rally Point sells its product at cost plus 40%.
 $\begin{array}{lrrrr}&\text { Job } 100&\text { Job } 200&\text { Job } 300\
\text { Balance } 1 / 1 & \$ 13,790 & \$ 0 & \$ 0 \
\text { Direct Materials } & 16,200 & 8,500 & 30,500 \
\text { Direct Labour Cost } & 23,300 & 7,600 & 45,000 \
\text { Machine Hours } & 400 & 300 & 2,000
\end{array}$
-Refer to the Figure.What is the sales revenue for January?

Quizplus · Accepted Answer

The sales revenue for January is $264,306. This is calculated by adding the cost of goods sold for Jobs 100 and 300 and then multiplying the total by 140%. The cost of goods sold for Job 100 is $43,290 ($13,790 + $16,200 + $23,300). The cost of goods sold for Job 300 is $75,500 ($30,500 + $45,000). The total cost of goods sold is $118,790 ($43,290 + $75,500). The sales revenue is $166,306 ($118,790 x 140%).

Rally Point Inc -Refer to the Figure