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In: Accounting

Carlon, Inc. uses a job-order costing system and applies overhead based on direct labor dollars. Job...

Carlon, Inc. uses a job-order costing system and applies overhead based on direct labor dollars. Job 316 was started in July and incurred the following costs in July: Direct materials $950 Direct labor $1,050 Applied overhead $1,260 The job was completed in August with an additional $2,100 in direct material cost and $1,400 in additional direct labor cost. What was the total cost of Job 316 at the end of August?

Solutions

Expert Solution

  • All working forms part of the answer
  • Working: For Calculating Overheads applied

A

Applied overhead in Jul

$              1,260.00

B

Direct Labor cost in Jul

$              1,050.00

C = (A/B) x 100

Overheads applied at rate of

120%

  • Calculation of Total Cost for the job

A

Direct Material Cost:

in Jul

$                  950.00

in Aug

$              2,100.00

$             3,050.00

B

Direct labor Cost:

in Jul

$              1,050.00

in Aug

$              1,400.00

$             2,450.00

C = $2450 x 120%

Overhead applied

$             2,940.00

D = A+B+C

Total Cost for the job at the end of Aug

$             8,440.00

  • Answer = $ 8,440

ekkarill92 answered 2 years ago
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