Question

. 2 Аавос Аавbcci Пар Heading 1 Heading 2 Title GORE А. I Normal 1 No Spac... ho se 2 Paragraph Styles Edit: 1. Abc Company is a Contracting Company that builds custom-made boats. It received from MVB an order to build 5 custom-made boats. The boats are to be delivered in 6 months with the first two to be delivered in the next two months. The following costs are incurred for the two boats to be delivered in two months: Direct Materials $ 180,000 Direct Labor $120,000 Manufacturing Overhead is applied at 50% of Direct Materials. 2 Required: i. How much is the Total Cost to produce the two jobs? Show computation. ii. How much is the Cost for each the two Jobs completed? III. The two Jobs are sold to MVB at 4 times of the cost. Give the journal entries to record the sale which was for Cash D'Focus

Answer 1

i) Total cost to Produce Direct Material Direct Labor Manufacturing overheads Total Cost of Job $180,000 $120,000 $90,000 50% of $180,000 $390,000 $390,000 Cost per each job Total Cost of Job Total units Cost per each job $195,000 Credit Debit $1,560,000 $1,560,000 iii) Date General Journal Cash Sales revenue (To record cash sales) Cost of goods sold Finished goods (To record of cost of good sold) $390,000 $390,000 Sales price = $390,000* 4 $1,560,000