1 Calculation of predetermined overhead rate based on direct labor cost: Job 70 Job 71 Job 72 Applied Overhead (A) 1425 975 675 Direct Labor Cost (B) 1900 1300 900 Predetermined overhead rate (% of Direct Labor Cost)= A/B 75% 75% 75% 2 Calculation of ending balance for each job as of August 31: Job 70 Job 71 Job 72 Job 73 Job 74 Job 75 Job 76 Direct Material $ 2,400 $ 3,235 $ 4,400 $ 5,000 $ 300 $ 560 $ 80 (1600+800) (2000+1235) (850+3550) Direct labor $ 2,900 $ 2,700 $ 3,100 $ 1,800 $ 600 $ 860 $ 172 (1900+1000) (1300+1400) (900+2200) Overhead = Direct Labor Cost *75% $ 2,175 $ 2,025 $ 2,325 $ 1,350 $ 450 $ 645 $ 129 Ending Balance $ 7,475 $ 7,960 $ 9,825 $ 8,150 $ 1,350 $ 2,065 $ 381 3 Calculation of ending balance of Work in Process as of August 31: Jobs in ending work in process Job 71 Job 74 Job 76 Total Ending balance of Work in Process as of August 31 $ 7,960 $ 1,350 $ 381 $ 9,691 4 Calculation of cost of goods sold for August: Jobs sold Job 72 Job 75 Total Cost of Goods sold $ 9,825 $ 2,065 $ 11,890 5 Calculation of Cairle’s sales revenue for August: Jobs sold Job 72 Job 75 Total Cost of Goods sold $ 9,825 $ 2,065 $ 11,890 Add: Margin = Cost * 20% $ 1,965 $ 413 $ 2,378 Sales Revenue $ 11,790 $ 2,478 $ 14,268 1 Calculation of predetermined overhead rate based on direct labor cost: Job 70 Job 71 Job 72 Applied Overhead (A) 1425 975 675 Direct Labor Cost (B) 1900 1300 900 Predetermined overhead rate (% of Direct Labor Cost)= A/B 75% 75% 75% 2 Calculation of ending balance for each job as of August 31: Job 70 Job 71 Job 72 Job 73 Job 74 Job 75 Job 76 Direct Material $ 2,400 $ 3,235 $ 4,400 $ 5,000 $ 300 $ 560 $ 80 (1600+800) (2000+1235) (850+3550) Direct labor $ 2,900 $ 2,700 $ 3,100 $ 1,800 $ 600 $ 860 $ 172 (1900+1000) (1300+1400) (900+2200) Overhead = Direct Labor Cost *75% $ 2,175 $ 2,025 $ 2,325 $ 1,350 $ 450 $ 645 $ 129 Ending Balance $ 7,475 $ 7,960 $ 9,825 $ 8,150 $ 1,350 $ 2,065 $ 381 3 Calculation of ending balance of Work in Process as of August 31: Jobs in ending work in process Job 71 Job 74 Job 76 Total Ending balance of Work in Process as of August 31 $ 7,960 $ 1,350 $ 381 $ 9,691 4 Calculation of cost of goods sold for August: Jobs sold Job 72 Job 75 Total Cost of Goods sold $ 9,825 $ 2,065 $ 11,890 5 Calculation of Cairle’s sales revenue for August: Jobs sold Job 72 Job 75 Total Cost of Goods sold $ 9,825 $ 2,065 $ 11,890 Add: Margin = Cost * 20% $ 1,965 $ 413 $ 2,378 Sales Revenue $ 11,790 $ 2,478 $ 14,268 Solution 1 Calculation of predetermined overhead rate based on direct labor cost: Job 70 Job 71 Job 72 Applied Overhead (A) 1425 975 675 Direct Labor Cost (B) 1900 1300 900 Predetermined overhead rate (% of Direct Labor Cost)= A/B 75% 75% 75% 2 Calculation of ending balance for each job as of August 31: Job 70 Job 71 Job 72 Job 73 Job 74 Job 75 Job 76 Direct Material $ 2,400 $ 3,235 $ 4,400 $ 5,000 $ 300 $ 560 $ 80 (1600+800) (2000+1235) (850+3550) Direct labor $ 2,900 $ 2,700 $ 3,100 $ 1,800 $ 600 $ 860 $ 172 (1900+10.

1. 1
Calculation of predetermined overhead rate based on direct labor cost:
Job 70
Job 71
Job 72
Applied Overhead (A)
1425
975
675
Direct Labor Cost (B)
1900
1300
900
Predetermined overhead rate (% of Direct Labor Cost)= A/B
75%
75%
75%
2
Calculation of ending balance for each job as of August 31:
Job 70
Job 71
Job 72
Job 73
Job 74
Job 75
Job 76
Direct Material
$ 2,400
$ 3,235
$ 4,400
$ 5,000
$ 300
$ 560
$ 80
(1600+800)

2. (2000+1235)
(850+3550)
Direct labor
$ 2,900
$ 2,700
$ 3,100
$ 1,800
$ 600
$ 860
$ 172
(1900+1000)
(1300+1400)
(900+2200)
Overhead = Direct Labor Cost *75%
$ 2,175
$ 2,025
$ 2,325
$ 1,350
$ 450
$ 645
$ 129
Ending Balance
$ 7,475
$ 7,960
$ 9,825
$ 8,150
$ 1,350
$ 2,065
$ 381
3
Calculation of ending balance of Work in Process as of August 31:
Jobs in ending work in process
Job 71
Job 74
Job 76
Total

3. Ending balance of Work in Process as of August 31
$ 7,960
$ 1,350
$ 381
$ 9,691
4
Calculation of cost of goods sold for August:
Jobs sold
Job 72
Job 75
Total
Cost of Goods sold
$ 9,825
$ 2,065
$ 11,890
5
Calculation of Cairle’s sales revenue for August:
Jobs sold
Job 72
Job 75
Total
Cost of Goods sold
$ 9,825
$ 2,065
$ 11,890
Add: Margin = Cost * 20%
$ 1,965
$ 413
$ 2,378
Sales Revenue
$ 11,790
$ 2,478
$ 14,268
1
Calculation of predetermined overhead rate based on direct labor cost:
Job 70

4. Job 71
Job 72
Applied Overhead (A)
1425
975
675
Direct Labor Cost (B)
1900
1300
900
Predetermined overhead rate (% of Direct Labor Cost)= A/B
75%
75%
75%
2
Calculation of ending balance for each job as of August 31:
Job 70
Job 71
Job 72
Job 73
Job 74
Job 75
Job 76
Direct Material
$ 2,400
$ 3,235
$ 4,400
$ 5,000
$ 300
$ 560
$ 80
(1600+800)
(2000+1235)
(850+3550)
Direct labor
$ 2,900

5. $ 2,700
$ 3,100
$ 1,800
$ 600
$ 860
$ 172
(1900+1000)
(1300+1400)
(900+2200)
Overhead = Direct Labor Cost *75%
$ 2,175
$ 2,025
$ 2,325
$ 1,350
$ 450
$ 645
$ 129
Ending Balance
$ 7,475
$ 7,960
$ 9,825
$ 8,150
$ 1,350
$ 2,065
$ 381
3
Calculation of ending balance of Work in Process as of August 31:
Jobs in ending work in process
Job 71
Job 74
Job 76
Total
Ending balance of Work in Process as of August 31
$ 7,960
$ 1,350
$ 381

6. $ 9,691
4
Calculation of cost of goods sold for August:
Jobs sold
Job 72
Job 75
Total
Cost of Goods sold
$ 9,825
$ 2,065
$ 11,890
5
Calculation of Cairle’s sales revenue for August:
Jobs sold
Job 72
Job 75
Total
Cost of Goods sold
$ 9,825
$ 2,065
$ 11,890
Add: Margin = Cost * 20%
$ 1,965
$ 413
$ 2,378
Sales Revenue
$ 11,790
$ 2,478
$ 14,268
Solution
1
Calculation of predetermined overhead rate based on direct labor cost:
Job 70
Job 71

7. Job 72
Applied Overhead (A)
1425
975
675
Direct Labor Cost (B)
1900
1300
900
Predetermined overhead rate (% of Direct Labor Cost)= A/B
75%
75%
75%
2
Calculation of ending balance for each job as of August 31:
Job 70
Job 71
Job 72
Job 73
Job 74
Job 75
Job 76
Direct Material
$ 2,400
$ 3,235
$ 4,400
$ 5,000
$ 300
$ 560
$ 80
(1600+800)
(2000+1235)
(850+3550)
Direct labor
$ 2,900
$ 2,700

8. $ 3,100
$ 1,800
$ 600
$ 860
$ 172
(1900+1000)
(1300+1400)
(900+2200)
Overhead = Direct Labor Cost *75%
$ 2,175
$ 2,025
$ 2,325
$ 1,350
$ 450
$ 645
$ 129
Ending Balance
$ 7,475
$ 7,960
$ 9,825
$ 8,150
$ 1,350
$ 2,065
$ 381
3
Calculation of ending balance of Work in Process as of August 31:
Jobs in ending work in process
Job 71
Job 74
Job 76
Total
Ending balance of Work in Process as of August 31
$ 7,960
$ 1,350
$ 381
$ 9,691

9. 4
Calculation of cost of goods sold for August:
Jobs sold
Job 72
Job 75
Total
Cost of Goods sold
$ 9,825
$ 2,065
$ 11,890
5
Calculation of Cairle’s sales revenue for August:
Jobs sold
Job 72
Job 75
Total
Cost of Goods sold
$ 9,825
$ 2,065
$ 11,890
Add: Margin = Cost * 20%
$ 1,965
$ 413
$ 2,378
Sales Revenue
$ 11,790
$ 2,478
$ 14,268
1
Calculation of predetermined overhead rate based on direct labor cost:
Job 70
Job 71
Job 72
Applied Overhead (A)
1425
975

10. 675
Direct Labor Cost (B)
1900
1300
900
Predetermined overhead rate (% of Direct Labor Cost)= A/B
75%
75%
75%
2
Calculation of ending balance for each job as of August 31:
Job 70
Job 71
Job 72
Job 73
Job 74
Job 75
Job 76
Direct Material
$ 2,400
$ 3,235
$ 4,400
$ 5,000
$ 300
$ 560
$ 80
(1600+800)
(2000+1235)
(850+3550)
Direct labor
$ 2,900
$ 2,700
$ 3,100
$ 1,800
$ 600
$ 860

11. $ 172
(1900+1000)
(1300+1400)
(900+2200)
Overhead = Direct Labor Cost *75%
$ 2,175
$ 2,025
$ 2,325
$ 1,350
$ 450
$ 645
$ 129
Ending Balance
$ 7,475
$ 7,960
$ 9,825
$ 8,150
$ 1,350
$ 2,065
$ 381
3
Calculation of ending balance of Work in Process as of August 31:
Jobs in ending work in process
Job 71
Job 74
Job 76
Total
Ending balance of Work in Process as of August 31
$ 7,960
$ 1,350
$ 381
$ 9,691
4
Calculation of cost of goods sold for August:
Jobs sold
Job 72

12. Job 75
Total
Cost of Goods sold
$ 9,825
$ 2,065
$ 11,890
5
Calculation of Cairle’s sales revenue for August:
Jobs sold
Job 72
Job 75
Total
Cost of Goods sold
$ 9,825
$ 2,065
$ 11,890
Add: Margin = Cost * 20%
$ 1,965
$ 413
$ 2,378
Sales Revenue
$ 11,790
$ 2,478
$ 14,268