Question

Question 01: Blake Cement (Pvt.) Ltd is engaged in the manufacturing of different kinds of cement. The production facility is located near Houston. It received an order from Triton Industries for 2,000Kg of white cement on October 01, 2016. This order is assigned Job number 313. The following information is available for the month of November 2016:

• Material purchased during the month amounted to $50,000.

• 50% of this material was assigned to Job# 313. Each bag uses $1,250 of material.

• Labor hours available in the month were 292. Each hour is paid @ $12 per hour. 200 hours were allocated to Job 313. Every 10Kg of cement requires 1 hour.

• FOH is applied @ $20 per machine hour. A total of 200 machine hours were available in October.

Job # 313 utilized 145 machine hours. Every 20Kg bag of cement requires 1.45 hours on the machine.

• Actual FOH amounted to $1,500.

• Each cement bag weighs 20Kg and is sold for $1,800.

REQUIRED: You are required to:

1. Prepare a Job Order Cost Sheet (Job# 313) for the month of October 2016.

Where the template for Job Order Cost Schedule is as under

Job Order Cost Sheet

Finland Toys Company 403 Bishopstoke Lane Mississauga, ON L4Z 1H9 Product: # AB-11 battery cars Specification: 10’ × 10’ red color Quantity: 60				Job Order # 3312 Date Ordered: mm/dd/yyyy Date Started: mm/dd/yyyy Date Wanted: mm/dd/yyyy Date Completed: mm/dd/yyyy
DIRECT MATERIALS
DATE		REQ. NO.	AMOUNT ($)	TOTAL
xx/xx		xx	xxx
xx/xx		xx	xxx
xx/xx		xx	xxx
				xxx
DIRECT LABOR
DATE		HOURS	COST		TOTAL
xx/xx		xx	xxx
xx/xx		xx	xxx
xx/xx		xx	xxx
		xxx		xxx
FOH APPLIED
DATE		MACHINE HOURS	COST	TOTAL
xx/xx		xx	xxx
xx/xx		xx	xxx
xx/xx		xx	xxx
		total hours × rate		xxx
			Sales…………………………………..………………… $xxx
			Factory cost…… $xx
			Marketing……… $xx
Direct materials………………………………… $xxx			Admin……………. Sxx
Direct labor…….………………………………… $xxx			Cost to make & sell………………………..……… ($xx)
FOH applied……………………………………… $xxx
Total Factory Cost	$xxx		Profit………………………………………………….		$xx

Answer 1