Question

please help, cant figure out the wrong ones.

thank you so much

Applying Overhead to Jobs, Costing Jobs Jagjit Company designs and builds retaining walls for individual customers. On August 1, there were two jobs in process: Job 93 with a beginning balance of $8,750 and Job 94 with a beginning balance of $7,300. Jagjit applies overhead at the rate of $8 per direct labor hour. Direct labor wages average $18 per hour. Data on August costs for all jobs are as follows Job 93 Job 94 Job 95 Job 96 Direct materials $950 $4,500 $3,300 $1,300 Direct labor cost 2,160 5,400 2,610 900 During August, Jobs 95 and 96 were started. Job 93 was completed on August 17, and the client was billed at cost plus 40%. All other jobs remained in process.

Answer 1

Solution: Particulars Beginning balance Direct materials Direct labor Applied overhead (Working Notes) Total Jagjit company Job order Cost sheets August 31st JOB 93 JOB 94 $8,750 $7,300 $950 $ 4,500 $ 2,160 $5,400 $960 $ 2,400 JOB 95 $0 $3,300 $ 2,610 $1,160 JOB 96 $0 $1,300 $ 900 $ 400 $ 12,820 $ 19,600 $7,070 $2,600 Computation of Labor hours : + Particulars Direct labor cost (A) Direct labor wage rate per hour (B) Number of labor hours C=A/B JOB 93 $ 2,160 $ 18 JOB 94 $5,400 $ 18 JOB 95 $ 2,610 JOB 96 $ 900 $ 18 $18 120 hours ($ 2160 / $ 18) 300 hours 145 hours ($5,400 / $ 18) ($ 2,610 / $ 18) 50 hours ($ 900 / $ 18)

Working Notes :

Computation of Applied overhead: Particulars Number of labor hours (A) Overhead rate per hour (B) Applied overhead C= A*B JOB 93 120 hours $8 $ 960 (120 labor hours $ 8) JOB 94 300 hours $8 $ 2,400 (300 labor hours *$ 8) JOB 95 145 hours $8 $ 1,160 (145 labor hours $ 8) JOB 96 50 hours $8 $ 400 (50 labor hours $ 8)

Thankyou !!!!!