BuyFindarrow_forward

Survey of Accounting (Accounting I)

8th Edition
Carl Warren
ISBN: 9781305961883

Solutions

Chapter
Section
BuyFindarrow_forward

Survey of Accounting (Accounting I)

8th Edition
Carl Warren
ISBN: 9781305961883
Textbook Problem

Schedules for unfinished jobs and completed jobs
Waddell Equipment Company uses a job order cost system. The following data summarize the operations related to production for April 20V t. the first month of operations:
a.Materials purchased on account, $36,000.
b.Materials requisitioned and factory labor used:


c. Factory overhead costs incurred on account, $6,000.
d.Depreciation of machinery and equipment, $1,550.
e.The factory overhead rate is $40 per machine hour. Machine hours used:

f. Jobs completed: 401, 402, 403, and 405.
g.Jobs were shipped and customers were billed as follows: Job 401 $22,750, Job 402 $16,600, Job 403 $8,400.
Instructions

Determine the gross profit for April based upon the jobs sold. Ignore the difference between actual and applied factory overhead.

To determine

Concept Introduction:

Job order costing:

Job order costing is applied to the businesses which manufactured the product or provide the services according to the client's order. As its names suggest, Job order costing is costing done for a particular job.

To Calculate:

The Gross Profit on the job sold

Explanation

The Gross Profit on the job sold is calculated as follows:

    Job SoldSales Revenue Cost of Goods Sold Gross profit
    A B

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

What is a slide error?

College Accounting, Chapters 1-27

INTEREST RATE DETERMINATION AND YIELD CURVES a. What effect would each of the following events likely have on t...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

What are the two main causes of market failure? Give an example of each.

Brief Principles of Macroeconomics (MindTap Course List)

What are the differences between Internal and external recruiting?

Foundations of Business (MindTap Course List)

Why might purchasing power parity fail to hold?

Fundamentals of Financial Management, Concise Edition (MindTap Course List)