Question

At the end of April, Cavy Company had completed Job 766 and 765. Job 766 is for 675 units, and Job 765 is for 900 units. According to the individual job cost sheets the information is as follows: 

Job Direct Materials Direct Labor Machine Hours 

Job 765 $5,670 $3,500 27

Job 766  $8,900  $4,775  44

Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $200 per hour, determine the (a) balance on the job cost sheets for each job, and (b) the cost per unit at the end of April.

Answer 1

a)	Job 765	Job 766
Direct Materials	$    5,670.00	$    8,900.00
Direct Labor	$    3,500.00	$    4,775.00
Applied Overheads (27*200 / 44*200)	$    5,400.00	$    8,800.00
total	$ 14,570.00	$ 22,475.00
Divided by units	900	675
cost per unit (b)	$          16.19	$          33.30