Question

Ajob cost sheet of Sandoval Company is given below. JOB NO. ITEM FOR Job Cost Sheet 469 Quantity White Lion Cages Date Requested Todd Company Date Completed Direct Direct Materials Labor 2,500 7/2 7/31 Manufacturing Overhead 800 900 Date 7/10 12 15 22 24 27 31 500 400 625 500 1,675 1,550 700 875 Cost of completed job: Direct materials Direct labor Manufacturing overhead Total cost Unit cost

Answer 1

Cost of completed Job

Direct material	4925
Direct labor	1600
Overhead	2000
Total Cost	8525
Unit cost (8525/2500)	3.41

1) Source documents

Direct material	Purchase requisition/Material requisition/Store requisition
Direct labor	Clock cards/Smart cards
Overhead	Overhead application rate

2) Overhead rate = 625/500 = 125% of labor cost

3) Total Cost of completed Jobs = 8525

Unit cost of completed jobs = 3.41

4) Journal entry

Date	General Journal	Debit	Credit
July 31	Finished goods	8525
	Work in process		8525