A company prepares its accounts on monthly basis. A Company had no jobs in progress at the beginning of month and no beginning inventories. It started only 3 jobs during month Job 101, Job 102 and Job 103. Job 101 was completed and sold by the end of month and Job 103 was incomplete at the end of month and Job 102 is complete but not sold. The company uses a plant wide predetermined overhead based on direct labor hours. Job 101 Job 102 Job 103 Direct Materials $18,000 $11.000 $19,500 Direct Labor Cost $21.000 $7,500 S22,000 Actual Direct Labor hours 1,400 500 1,300 worked The following additional information is available for the company as a whole and for Job 101, Job 102 and Job 103 (all data relates to month) Estimated total fixed MOH S30,000 Estimated variable MOH per direct labor hours Estimated total direct labor hours to be worked $2 3,000 Total actual MOH cost incurred $40,000 Requirements: - If Job 101 includes 250 units what is its unit product cost?
A company prepares its accounts on monthly basis. A Company had no jobs in progress at the beginning of month and no beginning inventories. It started only 3 jobs during month Job 101, Job 102 and Job 103. Job 101 was completed and sold by the end of month and Job 103 was incomplete at the end of month and Job 102 is complete but not sold. The company uses a plant wide predetermined overhead based on direct labor hours. Job 101 Job 102 Job 103 Direct Materials $18,000 $11.000 $19,500 Direct Labor Cost $21.000 $7,500 S22,000 Actual Direct Labor hours 1,400 500 1,300 worked The following additional information is available for the company as a whole and for Job 101, Job 102 and Job 103 (all data relates to month) Estimated total fixed MOH S30,000 Estimated variable MOH per direct labor hours Estimated total direct labor hours to be worked $2 3,000 Total actual MOH cost incurred $40,000 Requirements: - If Job 101 includes 250 units what is its unit product cost?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter5: Product And Service Costing: Job-order System
Section: Chapter Questions
Problem 14E: On August 1, Cairle Companys work-in-process inventory consisted of three jobs with the following...
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