Job Order Costing Example

ABC Co$.$ produces two types of widgets in separate batches $-$ specialty widgets $($SW$)$ and common widgets $($CW$).$ The following relates to ABC Co$.$ and their production of widgets in January $2008.$ Total widget information $($specialty and common$)$ follows:

Widget makers are paid $$20$ per hour.

Estimated manufacturing overhead

Estimated machine hours $($cost driver$)$

$$5,000$

$250$

Job$-$SW Job$-$CW