Question

Job Costs At the end of August, Ingram Company had completed Jobs 40 and 42. Job 40 is for 1,000 units, and Job 42 is for 500 units. The following data relate to these two jobs: On August 4, raw materials were requisitioned for production as follows: 800 units for Job 40 at $10 per unit and 1,500 units for Job 42 at $20 per unit. During August, Ingram Company accumulated 800 hours of direct labor costs on Job 40 and 500 hours on Job 42. The total direct labor was incurred at a rate of $12 per direct labor hour for Job 40 and $20 per direct labor hour for Job 42. The predetermined factory overhead rate is $6.00 per direct labor hour.

a. Determine the balance on the job cost sheets for Jobs 40 and 42 at the end of August.

Job 40 $_______- Job 42 $_________

b. Determine the cost per unit for Jobs 40 and 42 at the end of August. If required, round your answers to the nearest cent.

Job 40 $ _________- Job 42 $__________

Answer 1

--All working forms part of the answer

	Job 40		Job 42
	Answer	Working	Answer	Working
Direct material Cost	$8,000	800 units x $ 10	$30,000	1500 units x $ 20
Direct Labor Cost	$9,600	800 hrs x $ 12 per hr	$10,000	500 hrs x $ 20 per hr
Overheads applied	$4,800	800 hrs x $6	$3,000	500 hrs x $ 6
Balance on the Job Cost Sheet = REQUIREMENT A	$22,400		$43,000
No. of units	1,000		500
Cost per units = REQUIREMENT B	$                      22.40		$                 86.00