Question

291) Job 227 was recently completed. The following data have been recorded on its job cost sheet:Direct materials$48,870Direct labor-hours405 labor-hoursDirect labor wage rate$13 per labor-hourMachine-hours486 machine-hoursNumber of units completed2,700 unitsThe company applies manufacturing overhead on the basis of machine-hours. The company estimates total overhead of $5,500 and 500 machine hours for the period. The predetermined overhead rate is $11 per machine-hour.Required: Compute the unit product cost that would appear on the job cost sheet for this job. Additionally the company implements a 60% mark up for selling price calculate selling price and gross profit.

Answer 1

Answer is given below

a) Job 227 Unit Product Cost Direct Material Direct Labor Overhead applied Total Product cost Total Units Unit Product Cost $48,870 $5,265 (405 hours * $13) $5,346 (486 hours * $11) $59,481 2,700 $22.03 Gross profit Selling price Per Unit $13.22 $35.25 Product Cost Add: Mark up at 60% Selling price Per Unit Total $22.03 $59,481.00 $13.22 $35,688.60 $35.25 $95,169.60