Question

Instructions Amount Descriptions Starting Questions Job-Order Cost Sheets Concluding Questions Instructions Jagit Company designs and builds retaining walls for individual customers. On August 1, there were two jobs in process: Job 93 with a beginning balance of $8,770, and Job 94 with a beginning balance of 57,300 Jagjit apples overhead at the rate of $10 per direct labor hour. Direct labor wages average $17 per hour. Data on August costs for all jobs are as follows: Job 93 Job 94 Job 95 Job 06 Direct materials $990 $4,530 $3,300 $1,280 Direct labor cost 2,380 5,100 2,550 1,020 During Augut, Jobs 95 and were started. Job 3 was completed on August 17, and the client was billed at cost plus 40%. All other jobs remained in process Required: 1. Calculate the number of direct labor hours that were worked on ach job in August 2. Calculate the overhead applied to each job during the month of August 3. Prepare job-order cost sheets for each job as of the end of August 4. Calculate the balance in Work in Process on August 31 5. What is the price of Job 37 6. CONCEPTUAL CONNECTION: Partray through the year, Jagit bought a bulldozer to handle larger jobs. The buldozer cost $35,300 and is needed for larger commercws Smaller residents can be done with the air bobcat tractor. How could the r 's cost be applied to only those jobs that need the larger equipment

Answer 1

1.

	Job 93	Job 94	Job 95	Job 96
Direct Labor	$         2,380	$            5,100	$                2,550	$          1,020
Labor rate per hour	$               17	$                 17	$                     17	$               17
Labour hours	140	300	150	60

2.

	Job 93	Job 94	Job 95	Job 96
Direct Labor	$         2,380	$            5,100	$                2,550	$          1,020
Labor rate per hour	$               17	$                 17	$                     17	$               17
Labour hours	140	300	150	60
Overhead rate per hour	$               10	$                 10	$                     10	$               10
Overhead applied	$         1,400	$            3,000	$                1,500	$             600

3.

	Job 93	Job 94	Job 95	Job 96
Beginning Balance	$         8,770	$            7,300
Direct Material	$            990	$            4,530	$                3,300	$          1,280
Direct Labor	$         2,380	$            5,100	$                2,550	$          1,020
Overhead applied	$         1,400	$            3,000	$                1,500	$             600
Total	$       13,540	$         19,930	$                7,350	$          2,900

4.
Work in Process on August 31 = $19930+7350+2900 = $30180

5.
Price of Job 93 = $13540 x 1.4 = $18956