Question

For each job, complete the job cost worksheet with the following information:

Job P

Our customer ordered 38 windows for us to install. The following is the information and documentation related to the direct materials and direct labor costs for the job:

Material requisition #1006 for $6,500 of direct materials

Labor sheet #2795 for 1,350 direct labor hours

Material requisition #1008 for $7,500 of direct materials

Labor sheet #2802 for 520 direct labor hours

Job Q

Our customer ordered 23 windows for us to install. The following is the information and documentation related to the direct materials and direct labor costs for the job:

Materials requisition #999 for $3,500 of direct materials

Labor sheet #2681 for 485 direct labor hours

Materials requisition #1007 for $4,500 of direct materials

Labor sheet #2796 for 249 direct labor hours

Manufacturing overhead is applied based on direct labor hours. You will need to calculate the predetermined overhead rate based on the estimates provided on the cost flow diagram.

For both jobs, find the following costs:

Total direct materials

Total direct labor

Total manufacturing overhead applied

Total job cost

Average unit cost

For each job, what should the price be to generate a 60% markup on cost?

For the Cost Flow Diagram: Complete the cost flows through the diagram for both jobs. Create the journal entries for each of the cost flows from both jobs all the way through the sale.

Is the remaining amount of Manufacturing Overhead underapplied or overapplied? Create the entry to close Manufacturing Overhead.

Answer 1

The direct labor rate and the manufacturing overhead rates are not provided to arrive at the selling price for the products.

Job Cost Sheet
Job No.	P				Date initiated
Department					Date Completed
Item	Windows				Units completed		38
For stock
Direct Material		Direct Labor			Manufacturing Overhead
Req.No.	Amount	Ticket	Hours	Amount	Hours	Rate	Amount
#1006	6500	#2795	2350		2870
#1008	7500	#2802	520
	14000		2870	0			0
Cost Summary
Direct Materials			14000
Direct Labor			0
Manufacturing Overheads			0
Total Cost			14000
Unit product cost			368.4211
Job Cost Sheet
Job No.	Q				Date initiated
Department					Date Completed
Item	Windows				Units completed		23
For stock
Direct Material		Direct Labor			Manufacturing Overhead
Req.No.	Amount	Ticket	Hours	Amount	Hours	Rate	Amount
#999	3500	#2681	485		734
#1007	4500	#2796	249
	8000		734	0			0
Cost Summary
Direct Materials			8000
Direct Labor			0
Manufacturing Overheads			0
Total Cost			8000
Unit product cost			347.8261