Cost of a Manufactured Product Job Costing System Robert Perez is a contractor s
ID: 2516737 • Letter: C
Question
Cost of a Manufactured Product Job Costing System Robert Perez is a contractor specializing in custom-built Jacuzzis. As of May 1,2016 Perez has incurred the following costs for each of the jobs listed below. Perez uses the Job Order Cost system. STINER ALTON HERMAN 3,500 2,000 $ 3,000 1,200 DM DL FOH TOTAL: $4,920 DM ??. ? 1,5000 800 480 3,180 FOH POH TOTAL TOTAL: 6,700 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 $.60 per dollar of direct labor hours. MATERIALS FOH REQUISITIONS TIME TICKETS (APPLIED) 720.00 S 830.00 S STINER ALTON $ HERMANS 550.00 1,260.00 1,485.00 280.00 | $-3,000.00 2,625.00 S SMITH Determine the total cost of each of the completed jobs in the space below: ALTON HERMAN DM DL FOH TOTAL: S STINER DM DL FOH TOTAL: DM DL FOH TOTAL:Explanation / Answer
Q1. Total Cost of each Job Stiner Alton Herman DM 4,220 DM 3830 DM 4525 DL 2,550 Dl 2460 DL 2285 FOH 1,530 FOH 1476 FOH 1371 TOTAL 8300 TOTAL 7766 TOTAL 8181 Q2. TOTAL COST OF WIP (JOB SMITH) DM 2800 DL 3000 FOH 1800 TOTAL 7600 Q3. Under/Over-applied FOH FOH incurred (1125+3200+2450) 6775 FOH applied (1530+1476+1371+1800) 6177 Under-applied Overheads 598 Gross Profit (Net Income) will incnrease if the above under-absorbed remain unrecorded.