Applying Overhead to Jobs, Costing Jobs Jagjit Company designs and builds retaining walls for individual customers. On A
Posted: Mon May 02, 2022 7:04 am
Applying Overhead to Jobs, Costing Jobs
Jagjit Company designs and builds retaining walls for individual
customers. On August 1, there were two jobs in process: Job 93 with
a beginning balance of $8,820 and Job 94 with a beginning balance
of $7,400. Jagjit applies overhead at the rate of $7 per direct
labor hour. Direct labor wages average $17 per hour. Data on August
costs for all jobs are as follows:
During August, Jobs 95 and 96 were started. Job 93 was completed
on August 17, and the client was billed at cost plus 40%. All other
jobs remained in process.
Required:
Question Content Area
1. Calculate the number of direct labor
hours that were worked on each job in August.
2. Calculate the overhead applied to each
job during the month of August.
3. Prepare job-order cost sheets for each
job as of the end of August. All amount cells must have an entry;
enter zeros as needed.
4. Calculate the balance in Work in
Process on August 31.
The work in process balance on August 31 is $ ??
5. What is the price of Job 93?
The price of Job 93 is $ ??
6. CONCEPTUAL CONNECTION: Part way
through the year, Jagjit bought a bulldozer to handle larger jobs.
The bulldozer cost $38,700 and is needed for larger commercial
jobs. Smaller residential jobs can still be done with the smaller
bobcat tractor.
Complete the statement below that outlines how the bulldozer’s
cost could be applied to only those jobs that need the larger
equipment.
Create a separate BLANK for the acquisition and
use of the bulldozer. Treat the bulldozer’s depreciation, fuel,
maintenance, etc. as
BLANK. Divide this by the anticipated annual hours of use to
arrive at the BLANK
Jagjit Company designs and builds retaining walls for individual
customers. On August 1, there were two jobs in process: Job 93 with
a beginning balance of $8,820 and Job 94 with a beginning balance
of $7,400. Jagjit applies overhead at the rate of $7 per direct
labor hour. Direct labor wages average $17 per hour. Data on August
costs for all jobs are as follows:
During August, Jobs 95 and 96 were started. Job 93 was completed
on August 17, and the client was billed at cost plus 40%. All other
jobs remained in process.
Required:
Question Content Area
1. Calculate the number of direct labor
hours that were worked on each job in August.
2. Calculate the overhead applied to each
job during the month of August.
3. Prepare job-order cost sheets for each
job as of the end of August. All amount cells must have an entry;
enter zeros as needed.
4. Calculate the balance in Work in
Process on August 31.
The work in process balance on August 31 is $ ??
5. What is the price of Job 93?
The price of Job 93 is $ ??
6. CONCEPTUAL CONNECTION: Part way
through the year, Jagjit bought a bulldozer to handle larger jobs.
The bulldozer cost $38,700 and is needed for larger commercial
jobs. Smaller residential jobs can still be done with the smaller
bobcat tractor.
Complete the statement below that outlines how the bulldozer’s
cost could be applied to only those jobs that need the larger
equipment.
Create a separate BLANK for the acquisition and
use of the bulldozer. Treat the bulldozer’s depreciation, fuel,
maintenance, etc. as
BLANK. Divide this by the anticipated annual hours of use to
arrive at the BLANK