Question

Direct Mateirals- $10,000 on this job

Direct Labor- 400 hours at $10.00

Manufacturing Overhead- Estimated Rate- $15.00 per Direct Labor Hour

Requirement 1: Students will create a Job Order Costing spreadsheet in Excel (with formulas) using the data presented in the video.

Requirement 2: Using the Excel spreadsheet, complete a Job Order Costing spreadsheet for the following two customers:

John Smith ordered five tree houses

Jane Doe ordered three tree houses

Requirement 3: Questions to be answered:

1. What is the total cost for John Smith’s order?

2. What is the total cost for Jane Doe’s order?

3. Explain what a job costing system is.

4. List at least 6 items that is included in Direct Materials (items needed to build the tree house).

5. List at least 3 items that is included in Manufacturing Overhead (items needed by employees so they can build the tree house).

ABC Tree Houses Company
Job Costing Sheet
		Job Number:
		Customer Name:
	Number of Tree Houses	Direct Materials Costs (per tree house):	Direct Labor Costs (per tree house):	Manufacturing Overhead Costs (per tree house):
	1
	2
	3
	4
	5
	Total Costs:
		Cost Summary (for entire order):	Total Amount:
		Direct Materials Costs:
		Direct Labor Costs:
		Manufacturing Overhead Costs:
		Total Cost of Order:

Answer 1

Ans . 1			Job Number: 1 Customer Name:J Smith
Number of Tree Houses	Direct Materials Costs (per tree house):	Direct Labor Costs (per tree house):	Manufacturing Overhead Costs (per tree house):	Total Cost
1	10000	4000	6000	20000
2	10000	4000	6000	20000
3	10000	4000	6000	20000
4	10000	4000	6000	20000
5	10000	4000	6000	20000
Total Cost	50000	20000	30000	100000

Ans 2			Job Number: 2 Customer Name:Jane Deo
Number of Tree Houses	Direct Materials Costs (per tree house):	Direct Labor Costs (per tree house):	Manufacturing Overhead Costs (per tree house):	Total Cost
1	10000	4000	6000	20000
2	10000	4000	6000	20000
3	10000	4000	6000	20000
Total Cost	30000	12000	18000	60000

Ans 3

Job costing, also called project-based accounting, is the process of tracking costs and revenue for each individual project. Job costing looks at each project in detail, breaking down the costs of labor, materials and overhead. It makes fewer assumptions than other costing methods.

Job costing is commonly used in the construction industry, where costs vary widely from job to job. But it’s also used by manufacturers, creative agencies, law firms and more. Because job costing tracks costs in detail for each job, it can be a helpful tool for small business owners to evaluate individual jobs and see if any expenses can be reduced on similar projects in the future.

Ans to Q No. 4

For tree house we need very light weight but steardy material . Minimum six direct materials are --

1] Quality waterproof boards or exterior playwood for walls 2] Light weight interior plalywood for floors 3] Lumber 2x2 or 2x3 for framing 4] Roofing tar paper to protect from rain 5] Quality plastic for windows 6] wood for furnture.

Ans to Q 5

Three items of manufacturing overheads in tree hous are --

1] Glue 2] Tapes 3] Cleaning supplies

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