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: Job 44 Job 45 Direct materials $5,100 $1,500 Direct labor 1,200 3,000 Applied overhead 780 1,950 Balance, June 1 $7,080 $6,450 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: Job 44 Job 45 Job 46 Job 47 Direct materials $2,500 $7,110 $1,800 $1,700 Direct labor 800 6,400 900 560 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. 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Calculate the ending balances of Work in Process and Finished Goods as of June 30.

Work in Process:
Finished Goods:

4. Calculate the Cost of Goods Sold for June.

Cost of Goods Sold:

Rhone Company

Job-Order Cost Sheets

For the Month of June

1		Job 44	Job 45	Job 46	Job 47
2	Beginning balance, June 1
3
4
5
6

Calculate the overhead rate based on direct labor cost. Round to three decimal places.

The overhead rate based on direct labor cost is

Refer to the list below for the exact wording of text items within your job-order cost sheets.

Amount Descriptions
Applied overhead
Beginning balance, June 1
Direct labor
Direct materials
Total, June 30

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:

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

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:

	Job 44	Job 45	Job 46	Job 47
Direct materials	$2,500	$7,110	$1,800	$1,700
Direct labor	800	6,400	900	560

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.

	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.

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