Job costing and departmental cost driver rates The Leblanc Company employs a job order costing system to account for its costs. The company has three production departments. Separate departmental cost driver rates are employed because the demand for overhead resources for the three departments is very different. All jobs generally pass through all three production departments. Data regarding the hourly direct labor rates, cost driver rates, and three jobs for which work was done during June appear below. Jobs 101 and 102 were completed during June, while job 103 was not completed as of June 30. The costs charged to jobs not completed at the end of a month are shown as work in process inventory at the end of that month and at the beginning of the next month:
|
PRODUCTION DEPARTMENTS |
DIRECT LABOR RATES |
COST DRIVER RATES |
|
|
Department 1 |
$12 |
150% of direct material cost |
|
|
Department 2 |
18 |
$8 per machine hour |
|
|
Department 3 |
15 |
200% of direct labor cost |
|
|
|
JOB 101 |
JOB 102 |
JOB 103 |
|
Beginning work in process |
$25,500 |
$32,400 |
$0 |
|
Direct materials: |
|
|
|
|
Department 1 |
$40,000 |
$26,000 |
$58,000 |
|
Department 2 |
3,000 |
5,000 |
14,000 |
|
Department 3 |
0 |
0 |
0 |
|
Direct labor hours: |
|
|
|
|
Department 1 |
500 |
400 |
300 |
|
Department 2 |
200 |
250 |
350 |
|
Department 3 |
1,500 |
1,800 |
2,500 |
|
Machine hours: |
|
|
|
|
Department 1 |
0 |
0 |
0 |
|
Department 2 |
1,200 |
1,500 |
2,700 |
|
Department 3 |
150 |
300 |
200 |
Required
(a) Determine the total cost of completed job 101.
(b) Determine the total cost of completed job 102.
(c) Determine the ending balance of work in process inventory for job 103 as of June 30.