Perrin Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $187,500, and budgeted direct labor hours were 15,000. The average wage rate for direct labor is expected to be $25 per hour. During June, Perrin Company worked on four jobs. Data relating to these four jobs follow: Job 40 $32,800 23,200 Job 41 $16,500 8,900 3,550 20,300 Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 115 percent of cost. Job 40 is the only job in Finished Goods Inventory and will remain there until the customer accepts delivery and pays. Jobs 41 and 42 remain unfinished at the end of the month. Required: Beginning balance Materials requisitioned Direct labor cost Job 39 $23,200 16,400 7,500 1 1. Calculate the balance in Work in Process as of June 30. 2. Calculate the balance in Finished Goods as of June 30. $ $ 3. Calculate the cost of goods sold for June. Job 42 $0 14,200 5,100 4. Calculate the price charged for Job 39. Round your answer to two decimal places. 5. What if the customer for Job 40 was able to pay for the job by June 30? What would happen to the balance in Finished Goods? What would happen to the balance of Cost of Goods Sold?
Perrin Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $187,500, and budgeted direct labor hours were 15,000. The average wage rate for direct labor is expected to be $25 per hour. During June, Perrin Company worked on four jobs. Data relating to these four jobs follow: Job 40 $32,800 23,200 Job 41 $16,500 8,900 3,550 20,300 Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 115 percent of cost. Job 40 is the only job in Finished Goods Inventory and will remain there until the customer accepts delivery and pays. Jobs 41 and 42 remain unfinished at the end of the month. Required: Beginning balance Materials requisitioned Direct labor cost Job 39 $23,200 16,400 7,500 1 1. Calculate the balance in Work in Process as of June 30. 2. Calculate the balance in Finished Goods as of June 30. $ $ 3. Calculate the cost of goods sold for June. Job 42 $0 14,200 5,100 4. Calculate the price charged for Job 39. Round your answer to two decimal places. 5. What if the customer for Job 40 was able to pay for the job by June 30? What would happen to the balance in Finished Goods? What would happen to the balance of Cost of Goods Sold?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Kk.332.
Transcribed Image Text:Perrin Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $187,500, and budgeted direct labor hours were 15,000. The average wage rate for direct labor is expected to be $25 per hour. During June,
Perrin Company worked on four jobs. Data relating to these four jobs follow:
Job 41
$16,500
8,900
3,550
Beginning balance
Materials requisitioned
Direct labor cost
Job 39
$23,200
16,400
7,500
Job 40
$32,800
23,200
20,300
Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 115 percent of cost. Job 40 is the only job in Finished Goods Inventory and will remain there until the customer accepts
delivery and pays. Jobs 41 and 42 remain unfinished at the end of the month.
Required:
1
1. Calculate the balance in Work in Process as of June 30.
2. Calculate the balance in Finished Goods as of June 30.
$
3. Calculate the cost of goods sold for June.
$
Job 42
$0
14,200
5,100
4. Calculate the price charged for Job 39. Round your answer to two decimal places.
5. What if the customer for Job 40 was able to pay for the job by June 30? What would happen to the balance in Finished Goods?
What would happen to the balance of Cost of Goods Sold?
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