At the end of August, Carrothers Company had completed Jobs 50 and 56. Job 50 is for 1,000 units, and Job 56 is for 500 units. The following data relate to these two jobs: On August 4, Carrothers Company purchased on account 31,000 units of materials at $16 per unit. During August, raw materials were requisitioned for production as follows: 7,900 units for Job 50 at $11 per unit and 6,100 units for Job 56 at $16 per unit. During August, Carrothers Company accumulated 4,300 hours of direct labor costs on Job 50 and 5,100 hours on Job 56. The total direct labor was incurred at a rate of $21.00 per direct labor hour for Job 50 and $18.50 per direct labor hour for Job 56. Carrothers Company estimates that total factory overhead costs will be $960,000 for the year. Direct labor hours are estimated to be 80,000. a. Determine the balance on the job cost sheets for Jobs 50 and 56 at the end of August. Determine the cost per unit for Jobs 50 and 56 at the end of August. If required, round your answers to two decimal places.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
At the end of August, Carrothers Company had completed Jobs 50 and 56. Job 50 is for 1,000 units, and Job 56 is for 500 units.
The following data relate to these two jobs:
On August 4, Carrothers Company purchased on account 31,000 units of materials at $16 per unit. During August, raw materials were requisitioned for production as follows: 7,900 units for Job 50 at $11 per unit and 6,100 units for Job 56 at $16 per unit.
During August, Carrothers Company accumulated 4,300 hours of direct labor costs on Job 50 and 5,100 hours on Job 56. The total direct labor was incurred at a rate of $21.00 per direct labor hour for Job 50 and $18.50 per direct labor hour for Job 56.
Carrothers Company estimates that total
a. Determine the balance on the
Determine the cost per unit for Jobs 50 and 56 at the end of August. If required, round your answers to two decimal places.
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