Reference no: EM132090158
Question - On August 1, Cairle Company's work-in-process inventory consisted of three jobs with the following costs:
During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows:
Before the end of August, Jobs 70, 72, 73, and 75 were completed. On August 31, Jobs 72 and 75 were sold.
Required:
1. Calculate the predetermined overhead rate based on direct labor cost.
2. Calculate the ending balance for each job as of August 31.
3. Calculate the ending balance of Work in Process as of August 31.
4. Calculate the cost of goods sold for August.
5. Assuming that Cairle prices its jobs at cost plus 20 percent, calculate Cairle's sales revenue for August.
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