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Cleveland Metals 89200

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Cleveland Metals uses a job cost system and applies factory overhead to production
at a predetermined rate of 180% of direct labor cost. Data pertaining to recent
operations follow:

• Job No. 636 was the only job in process on January 1 of the current year. The
Work in Process account contained a $24,600 balance on this date.
• Job Nos. 637, 638, and 639 were started during January.
• Total direct material requisitions and direct labor incurred during January
amounted to $89,200 and $114,500, respectively.
• The only job that remained in process on January 31 was job No. 638, with costs
of $15,000 for direct materials and $20,000 for direct labor.

a. Compute the total cost of the work in process inventory on January 31.
b. Compute the cost of jobs completed during January, and present the proper journal
entry to reflect job completion.

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