Sangvikar Company had balances in its inventory accounts on April 1. Work-in-process inventory consisted of 3 jobs with direct materials, direct labor, and applied overhead costs. During April, Sangvikar purchased materials on account, requisitioned materials for jobs 114, 115, and 116, recorded direct labor hours and costs for each job, applied overhead based on direct labor cost, and completed and shipped job 115, billing the customer 125% of costs.
Sangvikar Company had balances in its inventory accounts on April 1. Work-in-process inventory consisted of 3 jobs with direct materials, direct labor, and applied overhead costs. During April, Sangvikar purchased materials on account, requisitioned materials for jobs 114, 115, and 116, recorded direct labor hours and costs for each job, applied overhead based on direct labor cost, and completed and shipped job 115, billing the customer 125% of costs.
Sangvikar Company had balances in its inventory accounts on April 1. Work-in-process inventory consisted of 3 jobs with direct materials, direct labor, and applied overhead costs. During April, Sangvikar purchased materials on account, requisitioned materials for jobs 114, 115, and 116, recorded direct labor hours and costs for each job, applied overhead based on direct labor cost, and completed and shipped job 115, billing the customer 125% of costs.
On April 1, Sangvikar Company had the following balances in its inventory
accounts:
Materials Inventory $12,730
Work-in-Process Inventory 21,340 Finished Goods Inventory 8,700 Work-in-process inventory is made up of three jobs with the following costs:
Job 114 Job 115 Job 116
Direct materials $2,411 $2,640 $3,650 Direct labor 1,800 1,560 4,300 Applied overhead 1,170 1,014 2,795 During April, Sangvikar experienced the transactions listed below.
a. Materials purchased on account, $29,000.
b. Materials requisitioned: Job 114, $16,500; Job 115, $12,200; and Job 116, $5,000. c. Job tickets were collected and summarized: Job 114, 150 hours at $12 per hour; Job 115, 220 hours at $14 per hour; and Job 116, 80 hours at $18 per hour. d. Overhead is applied on the basis of direct labor cost. e. Actual overhead was $4,415. f. Job 115 was completed and transferred to the finished goods warehouse. g. (1) Job 115 was shipped, and (2) the customer was billed for 125 percent of the cost.