Question

London Ceramics makes custom ceramic tiles. During​ March, the company started and finished Job​ #266. Job​ #266 consists of 3,200 ​tiles; each tile sells for $15. The​ company's records show the following direct materials were requisitioned for Job​ #266.

Basic terra cotta​ tiles: 3,200 units at ​$6 per unit

Specialty​ paint: 13 quarts at $ 7 per quart

High gloss​ glaze: 8 quarts at $17 per quart

Labor time records show the following employees worked on Job​ #266:

Alice​ Cooper: 23hours at $33 per hour

Matthew​ Kline: 27 hours at $18 per hour

Sierra Ceramics allocates manufacturing overhead at a rate of $ 32per direct labor hour.

What is the total amount of direct​ materials, direct​ labor, and manufacturing overhead that should be shown on Job​ #266's job cost​ record?

Answer 1

The​ company's records show the following direct materials were requisitioned for Job​ #266:

Basic terra cotta​ tiles: 3,200 units at ​$6 per unit

= 3,200 x 6

= $19,200

Specialty​ paint: 13 quarts at $ 7 per quart

= 13 x 7

= $91

High gloss​ glaze: 8 quarts at $17 per quart

= 8 x 17

= $136

Total direct​ material cost of Job​ #266 = 19,200 + 91 + 136

= $19,427

Labor time records show the following employees worked on Job​#266:

Alice​ Cooper: 23 hours at $33 per hour

= 23 x 33

= $759

Matthew​ Kline: 27 hours at $18 per hour

= 27 x 18

= $486

Total direct​ labor cost of Job​ #266 = 759 + 486

= $1,245

Manufacturing overhead rate = $32 per direct labor hour

Total direct labor hours used = 23 + 27

= 50

Manufacturing overhead applied to Job​ #266 = Total direct labor hours used x Manufacturing overhead rate

= 50 x 32

= $1,600

Job​ #266

Total direct​ material cost	$19,427
Total direct​ labor cost	$1,245
Manufacturing overhead applied	$1,600
Total cost	$22,272