8. The following data have been recorded for recently completed Job 896 on its j

Question

8. The following data have been recorded for recently completed Job 896 on its job cost sheet. Direct materials cost was $2,039. A total of 32 direct labor-hours and 175 machine-hours were worked on the job. The direct labor wage rate is $14 per labor-hour. The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $15 per machine-hour. The total cost for the job on its job cost sheet would be: 9. Peter Inc. had $35,000 of raw materials on hand on May 1. During the month, the company purchased an additional $68,000 of raw materials. During May, $92,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $5,000. The debits to the Work in Process account as a consequence of the raw materials transactions in May total: 10. Smith Inc. applies overhead to jobs on the basis of 60% of direct labor cost. If Job 487 shows $27,000 of manufacturing overhead applied, the direct labor cost on the job was:

Explanation / Answer

8. Mat = 2039 Lab = 14*32 = 448 OH = 175*15 = 2625 Total Cost = 5112. 9. Dr to WIP A/c would be =87000 ie 92000-5000. If indirect material also form part of WIP, then = 92000. 10. Direct Labour Cost = 27000/0.6 = 45000.

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