Question

Waterways has two major public-park projects to provide with comprehensive irrigation in one of its service locations this month. Job J57 and Job K52 involve 15 acres of landscaped terrain, which will require special-order, sprinkler heads to meet the specifications of the project. Using a job cost system to produce these parts, the following events occurred during December.

Raw materials were requisitioned from the company’s inventory on December 2 for $5,064; on December 8 for $1,068; and on December 14 for $3,447. In each instance, two-thirds (2/3) of these materials were for J57 and the rest for K52.

Six time tickets were turned in for these two projects for a total amount of 18 hours of work. All the workers were paid $17 per hour. The time tickets were dated December 3, December 9, and December 15. On each of those days, 6 labor hours were spent on these jobs, two-thirds (2/3) for J57 and the rest for K52.

The predetermined overhead rate is based on machine hours. The expected machine hour use for the year is 2,110 hours, and the anticipated overhead costs are $844,000 for the year. The machines were used by workers on projects K52 and J57 on December 3, 9, and 15. Six machine hours were used for project K52 (2 each day), and 8.5 machine hours were used for project J57 (2.5 the first day and 3 each of the other days). Both of these special orders were completed on December 15, producing 200 sprinkler heads for J57 and 100 sprinkler heads for K52.

Additional job order activities during this period included:

Dec.	1		Purchased raw materials from Durbin Supply Company on account for $52,700.
Dec.	2		Issued $40,000 of direct materials from the company’s inventory to jobs other than K52 and J57 and $3,000 of indirect materials.
Dec.	12		Paid Waterways’ factory salaries and wages for $64,900.
Dec.	13		Paid the factory’s water bill of $9,000.
Dec.	18		Transferred $49,900 of costs from other completed jobs to finished goods.
Dec.	21		Paid the factory’s electric bill of $12,100 for Waterways’ factory.
Dec.	31		Made adjusting entries forth factory that included accrued property taxes of $12,200, prepaid insurance of $8,700, and accumulated depreciation of $16,200.

set up the job cost sheets for job no. j57 and job no.k52 . determine the total cost for each manufacturing special order for these jobs

Answer 1

ANSWER

JOB COST SHEET Quantity Date Requested Dec 2 Date Completed Dec 15, 2012 200 units Job Number J57 special order parts Item Manufacturing Direct Direct Overhead Materials Labor Date Hours Rate Amount 02-Dec 3,376 2,5 S 03-Dec 68 400 1,000 08-Dec 712 $ 400 S 09-Dec 68 1,200 S 2,298 14-Dec 400 S 15-Dec 68 3 1,200 Cost Summary Direct materials 6,386.00 Direct labor 204.00 Manufacturing overhead 3,400.00 Total Cost S 9,990.00 Unit Cost ($9,990/200 49. JOB COST SHEET Quantity 100 units Date Requested Dec 2 Job Number K52 Date Completed Dec 15, 2012 Item special order parts Manufacturing Direct Direct Materials Labor Overhead Date Hours Rate Amount $1,688 02-Dec $34 $800 S 03-Dec 400 08-Dec 356 09-Dec 400 800 34 14-Dec 1,149 400 $ 15-Dec S 34 2 800 Cost Summary Direct materials 3,193.00 Direct labor S 102.00 Manufacturing overhead S 2,400.00 5.695.00 Total Cost Unit Cost ($5,695/100 units) 56.95

WORKINGS

2/3 = 0.67

0.67 J57 RAW MAT К52 Dec-02 5064 3376 1688 Dec-08 1068 712 356 3447 2298 1149 Dec-14 Time tickes 6 total hrs 18 paid each day 17 6 0.67 J57 K52 Dec-03 102 68 34 Dec-09 102 68 34 Dec-15 102 68 34 expected mhr totl 2110 844000 oh rate 400 J57 К52 Dec-03 2.5 1000 2 800 Dec-09 3 1200 2 800 800 Dec-15 3 1200 2 J57 К52 produce 100 200