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Category > Accounting Posted 20 Aug 2017 My Price 13.00

Blaine Corp

17.    LO.4 (Cost accumulation) Blaine Corp. makes floats for Mardi Gras in New Orleans. The company’s fiscal year ends on March 31. On January 1, 2010, the company’s WIP Inventory account appeared as follows:

 

Work in Process Inventory

 

Beginning balance

916,650

Cost of completed jobs

??

Direct material

589,670

 

 

Direct labor

159,600

 

 

Applied overhead

127,680

 

 

 

The direct labor cost contained in the beginning balance of WIP Inventory was for a total of 15,200 direct labor hours (DLHs). During January, 7,600 DLHs were recorded. Only one job was still in process on January 31. That job had $73,250 in direct material and 2,850 DLHs assigned to it.

a.     If overhead is applied on the basis of DLHs, what predetermined OH rate was in effect during the company’s 2009–2010 fiscal year?

b.    What was the average direct labor rate per hour?

c.     What amount of direct material cost was in the beginning balance of WIP Inventory?

d.    What was the balance in WIP Inventory at the end of January?

e.     What was the total cost of jobs manufactured in January?

Answers

Maurice Tutor
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Status NEW Posted 20 Aug 2017 10:08 PM My Price 13.00

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