Shenandoah Equipment Company uses a job order cost system. The following data summarize the operations related to

Question:

Shenandoah Equipment Company uses a job order cost system. The following data summarize the operations related to production for June 2012, the first month of operations:

a. Materials purchased on account, $93,600.

b. Materials requisitioned and factory labor used:

Shenandoah Equipment Company uses a job order cost system. The

c. Factory overhead costs incurred on account, $18,000.
d. Depreciation of machinery and equipment, $6,240.
e. The factory overhead rate is $50 per machine hour. Machine hours used:
Job ......... Machine Hours
No. 6001 ........... 72
No. 6002 .......... 120
No. 6003 ............ 96
No. 6004 ........... 300
No. 6005 ........... 132
No. 6006 ............ 80
Total ............. 800

f. Jobs completed: 6001, 6002, 6003, and 6005.
g. Jobs were shipped and customers were billed as follows: Job 6001, $26,000; Job 6002, $36,000; Job 6003, $48,000.

Instruction
1. Prepare a schedule summarizing manufacturing costs by job for June. Use the following form:
Job Direct MaterialsDirect LaborFactory OverheadTotal

2. Prepare a schedule of jobs finished in June.
3. Prepare a schedule of jobs sold in June. What account does this schedule support for the month of June?
4. Prepare a schedule of completed jobs on hand as of June 30, 2012. What account does this schedule support?
5. Prepare a schedule of unfinished jobs as of June 30, 2012. What account does this schedule support?
6. Determine the gross profit for June based upon the jobssold.