Job 412 was one of the many jobs started and completed during the year. The job

Question

Job 412 was one of the many jobs started and completed during the year. The job required $8,700 in direct materials and 35 hours of direct labor time at a total direct labor cost of $9,600. If the job contained four units and the company billed at 70% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer?

     

6.

Job 412 was one of the many jobs started and completed during the year. The job required $8,700 in direct materials and 35 hours of direct labor time at a total direct labor cost of $9,600. If the job contained four units and the company billed at 70% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer?

G Check Your Work-ogle Chrome D ezto.mheduration.com/hm.tpx Froya Fabnkker AS of Bergen, Norway, is a smal company that manufactures specialty heavy equipment or use in North Sea oil helds he company uses job-order costing system and spplies manutacturing overhead cost to Jons on 1h? bass ot direct labor-naurs its predetermined overhead rate was hased on a cost tomula hat estimated 374 0 of manufacturing ovemead for an estimated alocation basc o 1,100 direct labor-hours. The olowing trarisacliong look plauc durin the year al purchases arid scrvices wcre acquired on accourit). a Raw materials purchased for use in production, $235,000 b. Raw matenals requisitoned tor use in production (all direct meteriais), $220,000 c utility bils were incurred, $66. Cd0(90% related to tactory operatons and the remainder related to seling and administratve actvities) d Salary and wage costs were incurod $265,000 gr OoD hours irect labor 1,1 Indireci labor Selling and administrative salaries $145, 00D e Maintenance costs were incurred in the tactory, S1 (KIO f Advertising costs were incurred, $143,000 g Depretiation was rocordod ror the year $91,00 180% related to ractory equipment and lhe remainder h. Rental cost incurred on buidings, $116,000 (85% related to factory operations, and the remainder i Manufacturing ovemead cost was applied to jobs, S? k Sales tor the year (all on account) totaled$1 0 CIOo. These goods cost SBxid according to ther joh The balarices in the inventory accounts at the beginning of the year were relaled o selling and adrninislralive equiprienl) related to selling and administrative facilities. Cost at goods manutactured tor the yer, $840 do coet she0 Raw materials Work in process Finished Goods 5 23000 567,000 Required: 1 Prepare jnurnal entnes to record the above data [If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Answer is complete and correct.

Explanation / Answer

4.

Working:

Predetermined overhead rate = $374000/1100 = $340 per direct labor hour

5.

6.

No Event General Journal Debit Credit 1 1 Manufacturing overhead 10700 Cost of goods sold 10700 (To close overapplied overheads to cost of goods sold)

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