Robert Perez is a contractor specializing in custom-built Jacuzzis. As of May 1,

Question

Robert Perez is a contractor specializing in custom-built Jacuzzis. As of May 1, 2016 Perez has incurred the following costs for each of the jobs listed below. Perez uses the Job Order Cost system STINER ALTON HERMAN DM 2,800 DL FOH 1,599 TOTAL: 6,531 DM 2,220 1,348 1,011 TOTAL: 4,579 DM 1,150 DL FOH TOTAL: S 2,550 2,132 DL 800 600 During May, Perez incurs the following costs below. Perez begins one job during the month of May (Smith) and completes the other three during the course of the month (Stiner, Alton, and Herman). Factory Overhead is charged to jobs on the basis of $.75 per dollar of direct labor hours. MATERIALS REQUISITIONS TIME TICKETS (APPLIED) FOH STINER $ ALTON$ HERMAN $ SMITHS 420.00 $ 660.00 $ 2,480.00 $ ,900.00$ 460.00 1,400.00 1,348.00 2,420.00 Determine the total cost of each of the completed jobs in the space below: STINER ALTON HERMAN DM DL FOH TOTAL: DM DL FOH TOTAL DM DL FOH TOTAL: $

Explanation / Answer

1) total cost of each of the completed jobs Stiner Alton Herman DM 3220 2880 3630 DL 2592 2748 2148 FOH 1944 2061 1611 total 7756 7689 7389 total cost of job = opening + cost added during the year FOH applied = direct labor cost *.75 2) Amount left in WIP Smith DM 1,900 DL 2,420 FOH (2420*.75) 1815 total 6,135 3) Sales revenue 14,000 less cogs     (7756+7689+7389) 22834 Gross loss -8,834 4) Actual overhead (1400+1750+1800)= 4950 Applied OH (460+1400+1348+2420)*.75= 4221 overhead is under applied since overhead is under applied cost of goods sold will be understated and hence net income will be overstated

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.