Question

London Ceramics makes custom ceramic tiles. During March, the company started and finished Job #266. Job #266 consists of 2,800 tiles, each tile sells for $15. The company's records show the following direct materials were requisitioned for Job #266. Basic terra cotta tiles: 2,800 units at $7 per unit Specialty paint: 13 quarts at $17 per quart High gloss glaze: 5 quarts at $19 per quart Labor time records show the following employees worked on Job #266: Alice Cooper: 20 hours at $25 per hour Matthew Kline: 27 hours at $19 per hour Sierra Ceramics allocates manufacturing overhead at a rate of $36 per direct labor hour. What is the total amount of direct materials, direct labor, and manufacturing overhead that should be shown on Job #266's job cost record? O A $22,621 O B. $21,055 C. $42,000 OD. $1,692

Answer 1

solution Direct Material -Amount 19600 Basic terra cotta tires speciality paint High gloss glaze 2800 unit @ 7 per unit 13 quarts at 11 per quart 5 quarts at 19 per quart 221 95 | 19916 Direct Labour : 500 Alice Cooper Mathew kene 20 hour @ 25 per hour 27 hour@ 19 per hour 513 1013 Manufacturing overhead Total Labour hour (20+27] + 36 per hour 1692 1692 Total Job cost २२6-1 22621 option (A) is correct. - 2 cost of goods sold = Beginning Inventory + purchases - Endeng - Inventory = 12000 + 140700 -18200 = 134500 option (3) is correct

c) Total cost for the customer service category of value chain 1 = Customer suppost hotline = 10,800 Option (e) is correct ,