Lowland Corporation Is a Job Order Costing Company That Uses

Essay

Lowland Corporation is a job order costing company that uses activity-based costing to apply overhead to jobs. The following overhead activities were budgeted for the year.
The following information about the jobs was given for September.
By September 30, Jobs 1001 and 1003 were completed and sold. The remaining jobs were still in process.
Required:
1. Calculate the activity rates for each overhead activity.
2. Calculate the cost of each job for September 30.
3. What is the beginning work in process on September 1 and October 1?
4. What is the cost of goods manufactured?
5. What is the cost of goods sold?
6. Draw the T account for work in process. (include all debits and credits) Prepare the Statement of the Cost of Goods Manufactured.