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I really need help with this, please! On April 1, Company A had the following balances in its inventory accounts: Materials Inventory - $12,450 Work-in-Process Inventory - 22,605 Finished Goods Inventory - 4,600 Work-in-process inventory is made up of three jobs with the following costs: Job 1 Direct Materials - $3,650 Direct Labor - 1,800 Applied Overhead - 1,350 Job 2 Direct Materials - $1,900 Direct Labor - 1,560 Applied Overhead - 1,170 Job 3 Direct Materials - $3,650 Direct Labor - 4,300 Applied Overhead - 3,225 During April, Company A experienced the transactions listed below. Materials purchased on account, $26,000. Materials requisitioned: Job 114, $16,500; Job 115, $12,200; and Job 116, $5,000. Job tickets were collected and summarized: Job 114, 350 hours at $12 per hour; Job 115, 280 hours at $15 per hour; and Job 116, 150 hours at $20 per hour. Overhead is applied on the basis of direct labor cost. Actual overhead was $8,718. Job 115 was completed and transferred to the finished goods warehouse. Job 115 was shipped, and the customer was billed for 120 percent of the cost. Required: 1. Calculate the predetermined overhead rate based on direct labor costs. I got 75% and that is correct. 2. Calculate the ending balance for each job as of April 30. *** This is what I'm having trouble with! I don't know how to find the ending cash balances. I pretty much tried everything possible and still don't get the correct answer. Please help me! Thank you in advanced!!
1. 75% is correct for Thomasville rate. 2. You don't need to know the ending Cash balance. Set up a T account for each job. Total Beg Balance should equal 22,605, WIP. Then post those transactions that debited or credited each job. Since you don't need the ending balance in Materials or Finished Goods, or over/underapplied overhead, you can ignore those tranactions. But the data you show for 3 jobs, #1, 2,& 3, don't relate to the April transactions to jobs 114, 115 & 116. Are they in fact the same jobs? Strange.