Webb Company uses a job-order costing system and the following information is available from its records. The
Question:
Webb Company uses a job-order costing system and the following information is available from its records. The company has three jobs in process: #6, #9, and #13.
Raw material used
$128,500
Direct labor per hour
$10.15
Overhead applied based on direct labor cost
120%
Direct material was requisitioned as follows: 30 percent for Job 6, 25 percent for Job 9, and 25 percent for Job 13; the balance of the requisitions was considered indirect. Direct labor hours per job are 2,500 for job 6; 3,100 for Job 9; and 4,200 for Job 13. Indirect labor is $33,000. Other actual overhead costs totaled $36,000.
The company adds a 45% markup on cost in determining the amount to charge for each job (selling price).
How do I calculate the total cost for each job and the total amount to be charged for each job? Also, how do I calculate the cost per unit and the selling price per unit assuming that Job 6 produced 100 units, Job 9
produced 80 units, and Job 13 produced 72 units?
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer