EBK CORNERSTONES OF COST MANAGEMENT
3rd Edition
ISBN: 8220100474972
Author: MOWEN
Publisher: CENGAGE L
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Chapter 5, Problem 14E
On August 1, Cairle Company’s work-in-process inventory consisted of three jobs with the following costs:
During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows:
Before the end of August, Jobs 70, 72, 73, and 75 were completed. On August 31, Jobs 72 and 75 were sold.
Required:
- 1. Calculate the predetermined
overhead rate based on direct labor cost. - 2. Calculate the ending balance for each job as of August 31.
- 3. Calculate the ending balance of Work in Process as of August 31.
- 4. Calculate the cost of goods sold for August.
- 5. Assuming that Cairle prices its
jobs at cost plus 20 percent, calculate Cairle’s sales revenue for August.
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Chapter 5 Solutions
EBK CORNERSTONES OF COST MANAGEMENT
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