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Pedro Morales and Associates, a C.P.A. firm, uses job order costing to capture the costs of its audit jobs. There were no audit jobs in process at the beginning of November. Listed below are data concerning the three audit jobs conducted during November.
Gonzalez
Navarro
Rojas
Direct materials
600
400
200
Auditor labor costs
5,400
6,600
3,375
Auditor hours
72
88
45
Overhead costs are applied to jobs on the basis of auditor hours, and the predetermined overhead rate is $55 per auditor hour.
The Gonzalez job is the only incomplete job at the end of November. Actual overhead for the month was $12,000. Instructions:
a. Determine the cost of each job.
b. Indicate the balance of the Work in Process account at the end of November.
c. Calculate the ending balance of the Manufacturing Overhead account for November.
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