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Job order costing for Bjerg Company

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A job order cost sheet for Bjerg Company is shown below.

For 2,000 Units
Direct Materials Direct Labor Manufacturing Overhead
5,000 6,000 4,200
8,000 6,400
4,000 3,200
13,000 18,000 13,800
Cost of completed job:
Direct materials $ 13,000
Manufacturing overhead 13,800
$ 44,800
Unit cost ($44,800 / 2,000) $ 22.40

a. On the basis of the foregoing data answer the following questions.
a. What was the balance in Work in Process Inventory on January 1 if this was the only unfinished job?
b. If manufacturing overhead is applied on the basis of direct labor cost, what overhead rate was used in each year?
b. Prepare summary entries at January 31 to record the current year's transactions pertaining to Job No. 92.

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Solution Summary

Your tutorial is attached in Excel. Click in cells to see computations. I have shown you how to find the overhead rate for last year and this year. All the journal entries for January are shown for you.