On March 1 a dressmaker starts work on three custom-designed wedding dresses. The company uses job order costing and applies overhead to each job (dress) at the rate of 54% of direct materials costs. During the month, the jobs used direct materials as shown below. Direct materials used During the month, the jobs used direct labor as shown below. Jobs 1 and 3 are not finished by the end of March, and Job 2 is finished but not sold by the end of March. Direct labor used Job 1 Job 2 Job 3 $5,500 $7,500 $2,000 Direct materials Direct labor Factory overhead Job 1 Job 2 Job 3 $11,800 $5,400 $4,400 1. Determine the amounts of direct materials, direct labor, and factory overhead applied that would be reported on job cost sheets for each of the three jobs for March. JOB COST SHEET Job 1 Job 2 Job 3

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On March 1 a dressmaker starts work on three custom-designed wedding dresses. The company uses job order
costing and applies overhead to each job (dress) at the rate of 54% of direct materials costs. During the month, the
jobs used direct materials as shown below.
Direct materials used
During the month, the jobs used direct labor as shown below. Jobs 1 and 3 are not finished by the end of March,
and Job 2 is finished but not sold by the end of March.
Direct labor used
Job 1 Job 2 Job 3
$5,500 $7,500 $2,000
Direct materials
Direct labor
Factory overhead
Total
1. Determine the amounts of direct materials, direct labor, and factory overhead applied that would be reported on
job cost sheets for each of the three jobs for March.
Job 1 Job 2 Job 3
$11,800 $5,400 $4,400
JOB COST SHEET
Job 1
Ending work in process inventory
Job 2
Job 3
2. Determine the total dollar amount of Work in Process Inventory at the end of March.
3. Determine the total dollar amount of Finished Goods Inventory at the end of March. Assume the company has no
beginning Work in Process or Finished Goods inventories.
Finished goods inventory
Transcribed Image Text:On March 1 a dressmaker starts work on three custom-designed wedding dresses. The company uses job order costing and applies overhead to each job (dress) at the rate of 54% of direct materials costs. During the month, the jobs used direct materials as shown below. Direct materials used During the month, the jobs used direct labor as shown below. Jobs 1 and 3 are not finished by the end of March, and Job 2 is finished but not sold by the end of March. Direct labor used Job 1 Job 2 Job 3 $5,500 $7,500 $2,000 Direct materials Direct labor Factory overhead Total 1. Determine the amounts of direct materials, direct labor, and factory overhead applied that would be reported on job cost sheets for each of the three jobs for March. Job 1 Job 2 Job 3 $11,800 $5,400 $4,400 JOB COST SHEET Job 1 Ending work in process inventory Job 2 Job 3 2. Determine the total dollar amount of Work in Process Inventory at the end of March. 3. Determine the total dollar amount of Finished Goods Inventory at the end of March. Assume the company has no beginning Work in Process or Finished Goods inventories. Finished goods inventory
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Preparation of job cost sheet and calculation of work in process inventory and finished goods inventory at the end of march are as follows

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