Cost of a Manufactured Product- Job Costing System Robert Perez is a contractor
ID: 2516450 • Letter: C
Question
Cost of a Manufactured Product- Job Costing System Robert Perez is a contractor Perez has incurred the following costs for each of the jobs lis the Job Order Cost system specializing in custom-built Jacuzzis. As of May 1, 2016, STINER ALTON DM DL FOH TOTAL s 2,800 2,132 1,599 6531 HERMAN DM S 222 Di. 1,150 DM DL 800 600 TOTAI $ 2550 1,348 TOTAL 4579 During May, Perez incurs the following costs below. Perez begins one job during the month of May (Smith) and completes the other three during the course of the month Stiner, Alton, and Herman). Factory Overhead is charged to jobs on the basis of S.75 per dollar of direct labor hours. FOH MATERIALS REQUISITIONS TIME TICKETS (APPLIED) 460.00 1,400.00 1,348.00 2,420.00 420.00 $ STINER ALTON HERMAN $ SMITH 66000 S 2,48000 S 1,90000 S Dete mine the amoant of grass profit fhc Sold for-414,000 each to the customerExplanation / Answer
Solution:
Computation of Gross profit - Completed Jobs Particulars Stiner Alton Herman Sales $14,000.00 $14,000.00 $14,000.00 Costs: Opening WIP $6,531.00 $4,579.00 $2,550.00 Cost Incurred during May: Direct materials $420.00 $660.00 $2,480.00 Direct labor $460.00 $1,400.00 $1,348.00 Fixed overhead applied (Direct labor * $0.75) $345.00 $1,050.00 $1,011.00 Total cost incurred on job $7,756.00 $7,689.00 $7,389.00 Gross Profit $6,244.00 $6,311.00 $6,611.00