Jagjit Company designs and builds retaining walls for individual clients. On August 1, there were two jobs
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Jagjit Company designs and builds retaining walls for individual clients. On August 1, there were two jobs in progress: job 93 with a starting balance of $8,650 and job 94 with a starting balance of $7,270. Jagjit applies overhead at the rate of $9 per direct labor hour. Direct labor wages average $16 per hour. The August cost data for all jobs is as follows:
work 93 | work 94 | work 95 | work 96 | |
Direct materials | $910 | $4,590 | $3,330 | $1,270 |
Direct labor cost | 2,080 | 4.800 | 2,400 | 960 |
Jobs 95 and 96 were started during August. Job 93 was completed on August 17 and the customer was billed at cost plus 40%. All other jobs remained in process.
Required: | |
1. | Calculate the number of direct labor hours worked on each job in August. |
2. | Calculate the overhead applied to each job for the month of August. |
3. | Prepare job order cost sheets for each job by the end of August. |
4. | Calculate the balance in Work in Process as of August 31. |
5. | What is the price of work 93? |
6. | CONCEPT CONNECTION: In the middle of the year, Jagjit bought an excavator to handle bigger jobs. The excavator cost $38,500 and is needed for larger commercial jobs. Smaller residential jobs can still be done with the smaller bobcat tractor. How could the excavator cost be applied to only those jobs that need larger equipment? |
Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-1305103962
6th edition
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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