Exercise $19-6$

Computing job costs and gross profit P$1$ P$2$ P$3$

Information on Kwon Mfg$.$s activities for its first month of operations follows.

Purchased $$100,000$ of raw materials on credit.

b$.$ Materials requisitions show the following materials used for the month.

c$.$ Time tickets show the following labor used for the month.

D$.$ Applied overhead to Job $201$ and to Job $202$ using a predetermined overhead rate of $80\%$ of direct materials cost.

e$.$ Transferred Job $201$ to Finished Goods Inventory.

f$.$ Sold Job $201$ for $$163,760$ on credit.

g$.$ Incurred the following actual other overhead costs for the month.

$1.$Prepare a job cost sheet for Job $201$ and for Job $202$ for the month. Use the following simplified form.

Job no$.$

Materials $

Labor

Overhead

Total cost $

$2.$ Compute gross profit on the sale of Job $201.$