In January, Knox Company requisitions raw materials for production as follows: J
ID: 2417903 • Letter: I
Question
In January, Knox Company requisitions raw materials for production as follows: Job 1 $947, Job 2 $1,700, Job 3 $807, and general factory use $634. During January, time tickets show that the factory labor of $8,030 was used as follows: Job 1 $2,316, Job 2 $1,728, Job 3 $1,562, and general factory use $2,424.
Prepare the job cost sheets for each of the three jobs.
Job 1 Direct Materials Direct Labor
__________ __________
Job 2 Direct Materials Direct Labor
__________ __________
Job 3 Direct Materials Direct Labor
__________ __________
Explanation / Answer
the job cost sheets for each of the three jobs:
Allocation of factory overheads = 634+2424=$3058
As the production process requires more of Labor hours, so Direct Labor cost will appropriate overhead distribution driver. So, factory overhead can be allocated as:
Job 1 = 3058 /5606 *2316 = $1263
Job 2 = 3058 /5606 *1728 = 943
Job 3 = 3058 /5606 *1562 = 852
JOB DIRECT MATERIALS $ DIRECT LABOR $ FACTORY OVERHEAD $ TOTAL $ 1 $947 2,316 1263 4526 2 $1,700 1,728 943 4371 3 $807 1,562 852 3221 Total 3454 5606 3058 12118Related Questions
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