Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen

Exercise 14

Activity-Based Costing, Unit Cost, Ending Work-in-Process Inventory
Salazar Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Salazar identified three overhead activities and related drivers. Budgeted information for the year is as follows:

Salazar worked on five jobs in March. Data are as follows:

By March 31, Jobs 15, 16, and 17 were completed and sold. The remaining jobs were in process.
Required:
1. Calculate the activity rates for each of the three overhead activities.
2. Prepare job-order cost sheets for each job showing all costs through March 31. What is the cost of each job by the end of March?
3. Calculate the balance in Work in Process on March 31.
4. Calculate the cost of goods sold for March.