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A job cost sheet of Sandoval Company is given below
A job cost sheet of Sandoval Company is given below. What are the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job? What is the predetermined manufacturing overhead rate? (Round answer to 0 decimal places e.g 135.) What are the total cost and the unit cost of the completed job? (Round unit cost to 2 decimal places, e.g. 1.25.)
Expert Solution
(a) (1) The source documents are:
Direct materialsMaterials requisition slips.
Direct laborTime tickets.
Manufacturing overheadpredetermined overhead rate.
(2) The predetermined overhead rate is 125% of direct labor cost. For example, on July 15, the computation is $550 $440 = 125%. The same result is obtained on July 22 and 31.
(3) The total cost is:
|
Direct Material [$700 + $900 + $1,600 + $1,500] |
$4, 700 |
|
Direct Labor [$440 + $380 + $540] |
$1,360 |
|
Manufacturing Overhead [$550 + $475 + $675] |
$1,700 |
|
Total Cost |
$7,760 |
The unit cost is $3.104 ($7,760 2,500).
(b)
|
Date |
Particulars |
Dr. |
Cr. |
|
|
|
|
|
|
31-Jul |
Finished Goods Inventory |
$7,760 |
|
|
|
Work in Process Inventory |
|
$7,760 |
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