Robert Perez is a contractor specializing in custom-built Jacuzzis. As of May 1, 2016, Perez has incurred the following costs for each of the jobs listed below. Perez uses the Job Order Cost system.

	STINER			ALTON			HERMAN
TOTAL	$5,900		TOTAL	$4,040		TOTAL	$2,260
DM	$2,500		DM	$2,000		DM	$ 900
DL	$2,000		DL	$1,200		DL	$ 800
FOH	$1,400		FOH	$ 840		FOH	$ 560

During May, Perez incurs the following costs below.Perez begins one job during the month of May (Smith) and completes the other three during the course of the month (Stiner, Alton, and Herman). Factory Overhead is charged to jobs on the basis of $.70 per dollar of direct labor hours.

	MATERIALS REQUISITIONS	TIME TICKETS
STINER	$ 500.00	$ 400.00
ALTON	$ 600.00	$1,000.00
HERMAN	$2,300.00	$1,300.00
SMITH	$1,900.00	$2,300.00

Submission Requirements

Use thisM1 Product Cost Project Excel(Links to an external site.) template to provide the following information:

1. Determine the allocated Factory Overhead (FOH) for each job.

	MATERIALS REQUISITIONS	TIME TICKETS	FOH (ALLOCATED)
STINER	$	$	$
ALTON	$	$	$
HERMAN	$	$	$
SMITH	$	$	$

2. Determine the total cost of each of the completed jobs.

	STINER			ALTON			HERMAN
TOTAL	$		TOTAL	$		TOTAL	$
DM	$		DM	$		DM	$
DL	$		DL	$		DL	$
FOH	$		FOH	$		FOH	$

3. What is the total amount left in the Work in Process account at the end of May?

Hint:Use the job cost sheet for open job(s)!

	SMITH
TOTAL
DM
DL
FOH

4. Determine the amount of gross profit for each of the completed jobs, assuming they were sold for $13,000 each to the customer.

	STINER		ALTON		HERMAN
Gross Profits	$		$		$
Sales Revenue	$		$		$
Cost of Goods Sold	$		$		$

5. If actual FOH costs are as follows, evaluate whether FOH is over or under-applied. Discuss the impact on Gross Profit (and Net Income) if this is left unaddressed.

Indirect Materials		Indirect Labor		Other FOH
$1,500.00		$2,000.00		$1,400.00