Question

JOB NO. ITEM FOR 2.390 7/2 7/31 Manufacturing Overhead Date 7/10 Job Cost Sheet 469 Quantity White Lion Cages Date Requested Todd Company Date Completed Direct Direct Materials Labor 708 907 558 342 1,620 1,530 670 692 424 831 Cost of completed job: Direct materials Direct labor Manufacturing overhead Total cost Unit cost

Answer 1

Answer :-

First we find out Total Direct material ,Total Direct labor and Manufacturing overhead costs from given Job Cost Sheet.

Total Direct material = 708 + 907 + 1,620 + 1,530

Total Direct Material = $4,765

Total Direct Labor = 558 + 342 + 670

Total Direct labor = $1,570

Manufacturing Overhead = 692 + 424 + 831

Manufacturing overhead = $1,947

1) The source document of Direct Material is Materials Requisition Form.

The source document of Direct Labor is Time tickets.

The source document of Manufacturing overhead is Predetermined overhead rate.

2.Predetermined manufacturing overhead rate = (Total overhead /Total direct labor) × 100

Predetermined manufacturing overhead rate = ($1,947 / $1,570) × 100

Predetermined manufacturing overhead rate = 124%

If we find predetermined manufacturing overhead rate of any date we get same % of Predetermined rate.

On July 15,

Predetermined manufacturing overhead rate = (692/ 558)×100 = 124%

3)Calculation of total cost and unit cost of job

Direct Materials	$4,765
Direct labor	$1,570
Manufacturing overhead	$1,947
Total Cost	$8,282
Unit Cost	$3.47

Unit Cost = Total cost / No of Units

No.of units = 2,390 units

Unit cost = $8,282 / 2,390

Unit cost = $3.47

4) Journal entry to record the completion of the job :-

Date	Account Titles and Explanation	Debit	Credit
July 31	Finished goods inventory A/c. Dr.	$8,282
	To Work in process A/c		$8,282
	(To transfer jobs completed to finished goods)a