(1) Materials

4/1 2,700 Indirect

Purchases 11,500 Material 2,790
14,200 Direct
1,705 Material 9,705*
12,495

* $9,705 = $2,450 + $2,970 + $6,285

(Job 207) (Job 204) (Jobs 202, 203, 205, & 206)

Work in process ending inventory consists of jobs 203 & 206:

Job 203 Job 206 Total
Direct materials ($1,480 + $ 555) + $1,980 = $ 4,015
Direct labor ( 1,000 + 1,500) + 1,000 = 3,500
Applied overhead ( 800* + 1,200) + 800 = 2,800
Total ( 3,280 + 3,255) + 3,780 = $10,3155
* Applied overhead is 80% of direct labor cost.

(2) Work in Process............................................................ 4,450

Materials ............................................................... 1,250
Payroll ................................................................... 2,000
Applied Overhead................................................ 1,200
Finished Goods (4,700 + 1,250 + 2,000 + 1,200) ........ 9,150
Work in Process................................................... 9,150
Cost of Goods Sold...................................................... 9,150
Finished Goods ................................................... 9,150
Accounts Receivable ................................................... 13,725
Sales ..................................................................... 13,725

(3) Cost of goods manufactured = cost of jobs finished in April.

Job 205:
Direct material ............................ $ 2,500
Direct labor ................................. 2,100 (105 direct labor hours × $20)
Applied overhead ....................... 1,680 (105 direct labor hours × $16)
Total Job 205........................... $ 6,280

Job 202 ................................................. 9,150

Job 204 ................................................. 6,930
Job 207 ................................................. 5,870
Total ......................................... $28,230
 (4) Actual overhead (1,375 + 2,500 + 2,700 + 2,790) ....... $9,365
Applied overhead:
Jobs 202, 203, 205, 206 (330* hours × $16) ....... $ 5,280
Job 207 ................................................................. 1,520
Job 204 ($1,760 – $960) ...................................... 800
Total applied overhead............................... 7,600
Underapplied................................................................. $1,765
*100 + 75 + 105 + 50

(5) Jobs 201, 202, and 205 were sold. Their costs are $8450 + $9,150 + $6,280 = $23,880
Sales ( $23,880 × 150%) $ 35,820
Cost of goods sold (23,880)
Underapplied overhead (1,765)
Gross profit for April $ 10,175