The Jawad Machine Company produces drilling machines according to customer specifications. The following data pertains to Job
Question:
The Jawad Machine Company produces drilling machines according to customer specifications. The following data pertains to Job 894, order placed by Aslam Machines Shop.
Customer's order no: C153
Date started: November 04
Date ordered: October 25
Date finished: November 18
Description: 30 units of Drilling machines
Sales Price: $ 70,000
Costs incurred during the manufacturing of order are given as follows:
Week ending 11/11
Week ending 11/18
Material used - Department 1
$ 10000
$ 9,000
Material used - Department 2
3,500
5,000
Labor hours used - Department 1
500
600
Direct labor rate - Department 1
$ 8 per hour
$ 9 per hour
Labor hours used - Department 2
150
250
Direct labor rate - Department 2
$ 13 per hour
$ 9 per hour
Machine hours - Department 1
300
250
Factory overhead - Department 1
$ 6 per machine hour
$ 6 per machine hour
Factory overhead - Department 2
$ 7 per labor hour
$ 7 per labor hour
Marketing and administrative costs are charged to each order at a rate of 30% of total cost to manufacture.
Required:A Departmentalization job order cost sheet showing above data.
Operations Management Processes And Supply Chains
ISBN: 9781292409863
13th Global Edition
Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman