Acc349 Managerial Accounting: E2-12 Armando Ortiz and Associates, a C.P.A. firm

Acc349 Managerial Accounting

E2-12
Armando Ortiz 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.
Hernandez Navarro Vallejo
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 $50 per auditor hour. The Hernandez job is the only incomplete job at the end of November. Actual overhead for the month was $11,000.

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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