. The following information is from the materials requisitions and time tickets
ID: 2394032 • Letter: #
Question
. The following information is from the materials requisitions and time tickets for Job 9-1005 completed by Great Bay Boats. The requisitions are identified by code numbers starting with the letter Q, and the time tickets start with W. At the start of the year, management estimated that overhead cost would equal 110% of direct labor cost for each job.
Determine the total cost on the job cost sheet for Job 9-1005
Date Document Amount 7/1/2017 Q-4698 $ 1,250 7/1/2017 W-3393 600 7/5/2017 Q-4725 1,000 7/5/2017 W-3479 450 7/10/2017 W-3559 300
Explanation / Answer
Your equation is rather rather easy.
Direct materials. Add up the requisition tickets. Just add them up.
Direct Labor. Add up the time tickets. Just add them up.
Overhead. Take the quantity you obtained for Direct Labor, and multiply by 1.4.
Once you have these three components, sum them up and you've got your job fee.
Word of advice: don't be scared considering the fact that of the wording. These questions are worded in a manner, not to confuse you (good, not normally, at the least), however to get you used to how matters sound within the business world.
It quite might've been worded like this.
Add the Q's up. Add the W's up. To search out overhead simply take anything you got for the entire W's and tack on 40%. Once you get completed with that, let me know the way a lot the job fee.
That is how it works in the actual world. :)
every time you feel like you don't have an understanding of anything, go and ask your professor, "How would this particularly sound in the true world?" Ally your self with a nearby businessperson... Ask him or her.
I rather do handle issues like this in the course of my trade. For accounting functions you have to comprehend the bill/Ticket numbers. But for the bottom line, you've just gotta do the arithmetic proper.
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