1. The regular working days in a factory are Monday to Friday. Jenna and Patch (who are...
Question:
1. The regular working days in a factory are Monday to Friday. Jenna and Patch (who are paid $25 and $27 per hour, respectively) worked on Jobs 31 and 32 for the period August 4 to 10. The weekly time records and summary of the job tickets show the following: Total number of hours time in: Joe = 45, Pat = 43; Overtime: Joe = 6, Pat = 5; Expended on the jobs: No 31: Joe = 26, Pat = 17; No. 32: Joe = 20, Pat = 21. Jenna was authorized to work on overtime on Job No. 31 because of its rush nature; Patch had to work on overtime on Job No. 32 to make up for a machine breakdown during the week. Overtime premium is 25%. Factory overhead is 60% of direct labor cost and materials cost comprises 80% of total production cost. How much must be the respective production costs of Job Nos. 31 and 32?
2. Narwhal Corporation's Job 205 for the manufacture of 6,600 coats was completed during February at the following unit costs:- Direct materials, $1,500
- Direct labor, $1,000
- FOH (includes an allowance of $50 for spoiled work), $500
Final inspection of Job 205 disclosed 600 spoiled coats which were sold to a jobber for $600,000. If the spoilage loss is due to the exact specifications of the customer, how much must be the unit cost of the good coats produced on Job 205?
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill