In january, the Cabinet Company worked on six job orders for speciality kitchen

Question

In january, the Cabinet Company worked on six job orders for speciality kitchen cabinets. It began Job A-62 for Zeke Cabinets, Inc., on january 10, 2011 and completed it on January 24, 2011. Partial data for Job A-62 are as follows:

COSTS Machine hours used
Direct materials
Cedar $7,900
Pine 6,320
Hardware 2,930
Assembly supplies 988
Direct labor
Sawing 2,840 120
Shaping 2,200 220
Finishing 2,250 180
Assembly 2,890 50

The Cabinet Company produced a total of 34 cabinets for Job A-62. It's current predetermined overhead rate is $21.60 per machine hour. From the info given, prepare a job order cost card and compute the job orders product unit cost. (round to whole dollars.)

Explanation / Answer

Job order cost $ $ Direct Material Cedar 57900 Pine 6320 Hardware 2930 Assembly supplies 988 Direct Material 68138 Direct labor Sawing 2840 Shaping 2200 Finishing 2250 Assembly 2890 10180 Overhead is $21.60 per machine hour Sawing 120×21.60 2592 Shaping 220×21.60 4752 Finishing180×21.60 3888 Assembly 50×21.6 1080 Over heads 12312 Total cost 90630 Product unit cost= Total cost/No. of units 90630/34 2666

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