Question

1. A job cost sheet of Vaughn Company is given below.

Job Cost Sheet
JOB NO.		469		Quantity		2,500
ITEM		White Lion Cages		Date Requested		7/2
FOR		Todd Company		Date Completed		7/31
Date		Direct Materials		Direct Labor		Manufacturing Overhead
7/10		$700
12		940
15				$500		$625
22				300		375
24		1,650
27		1,510
31				500		625

Cost of completed job:
Direct materials
Direct labor
Manufacturing overhead
Total cost
Unit cost

Answer the following questions.

(a) What are the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job?

		Source Documents
Direct materials		select the source document                                                          Materials requisition slipsPredetermined overhead rateTime tickets
Direct labor		select the source document                                                          Materials requisition slipsPredetermined overhead rateTime tickets
Manufacturing overhead		select the source document                                                          Materials requisition slipsPredetermined overhead rateTime tickets

(b) What is the predetermined manufacturing overhead rate? (Round answer to 0 decimal places, e.g 135.)

Predetermined manufacturing overhead rate

enter the predetermined manufacturing overhead rate in percentages rounded to 0 decimal places

%

(c) What are the total cost and the unit cost of the completed job? (Round unit cost to 2 decimal places, e.g. 1.25.)

Total cost of the completed job		$enter the total cost of the completed job in dollars
Unit cost of the completed job		$enter the unit cost of the completed job in dollars rounded to 2 decimal places

2. Kevin Hall and Associates, a CPA firm, uses job order costing to capture the costs of its audit jobs. There were no audit jobs in process at the beginning of November. Listed below are data concerning the three audit jobs conducted during November.

		Wildhorse Inc.		Blossom Inc.		Crane Inc.
Direct materials		$660		$510		$290
Auditor labor costs		$5,900		$7,000		$3,675
Auditor hours		76		94		49

Overhead costs are applied to jobs on the basis of auditor hours, and the predetermined overhead rate is $54 per auditor hour. The Wildhorse Inc. job is the only incomplete job at the end of November. Actual overhead for the month was $12,100.

(a) Determine the cost of each job.

		Cost
Wildhorse		$enter the cost in dollars
Blossom		$enter the cost in dollars
Crane		$enter the cost in dollars

(b) Indicate the balance of the Service Contracts in Process account at the end of November.

Balance in service contracts in process account

$enter the Balance in service contracts in process account in dollars

(c) Calculate the ending balance of the Operating Overhead account for November.

Balance in operating overhead account

$enter the Balance in operating overhead account in dollars  select an option                                                          UnderappliedOverapplied

Answer 1

a
Direct materials	Materials requisition slips
Direct labor	Time tickets
Manufacturing overhead	Predetermined overhead rate
b
Predetermined manufacturing overhead rate	125%	=625/500
c
Direct materials	4800	=700+940+1650+1510
Direct labor	1300	=500+300+500
Manufacturing overhead	1625	=625+375+625
Total cost of the completed job	7725
Unit cost of the completed job	3.09	=7725/2500

Question-2

a
Wildhorse	10664
Blossom	12586
Crane	6611
b
Balance in service contracts in process account	10664
c
Balance in operating overhead account	274	Underapplied
Workings:
	Wildhorse	Blossom	Crane	Total
Direct materials	660	510	290	1460
Auditor labor costs	5900	7000	3675	16575
Overhead applied	4104	5076	2646	11826
Total cost	10664	12586	6611	29861
Actual overhead	12100
Less: Overhead applied	11826
Balance in operating overhead account	274
	Waters	Renolds	Bayfield
Overhead applied	=76*54	=94*54	=49*54