Essay
Dillman Company manufactures custom-built conveyor systems for factory and commercial operations.The cost accountant for Dillman Company is in the process of educating a new employee,Jerry Cole about the job-order costing system that Dillman Company uses.(The system is based on normal costs;overhead is applied based on direct labor cost and rounded to the next whole dollar. )The following job-order cost records are available for July:
| Job No. | Direct Materials | Direct Labor | Applied OH | Total Cost |
|---|---|---|---|---|
| 667 | $ 5,901 | $1,730 | $ 1,990 | $ 9,621 |
| 669 | 18,312 | 1,810 | 2,082 | 22,204 |
| 670 | 406 | 500 | 575 | 1,481 |
| 671 | 51,405 | 9,500 | 10,925 | 71,830 |
| 672 | 9,615 | 550 | 633 | 10,798 |
To explain the missing job number,the cost accountant informed Jerry that Job #668 had been completed in June.The accountant also told Jerry that Job #667 was the only job in process at the beginning of July.At that time,the job had been assigned $4,300 for direct material and $900 for direct labor.At the end of July,Job #671 had not been completed;all other jobs were complete.The cost accountant asked Jerry several questions to determine whether he understood the job-order costing system.
Required:Help Jerry answer the following questions:
a.
b.
c.
d.
Correct Answer:

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