Applying Overhead to Jobs, Costing JobsJagjit Company designs and builds retainingwalls for individual customers. On August 1,there were two jobs in process: Job 93 with abeginning balance of $8,750 and Job 94 with abeginning balance of $7,300. Jagjit appliesoverhead at the rate of $8 per direct labor hour.Direct labor wages average $18 per hour.Data on August costs for all jobs are as follows:Job 93Job 94Job 95Job 96Direct materials$ 950$4,500$3,300$1,300Direct labor cost2,1605,4002,610900During August, Jobs 95 and 96 were started. Job93 was completed on August 17, and the clientwas billed at cost plus 40%. All other jobsremained in process. Required:1. Calculate the number of direct laborhours that were worked on each job inAugust.2. Calculate the overhead applied to eachjob during the month of August.3. Prepare job-order cost sheets for eachjob as of the end of August.4. Calculate the balance in Work inProcess on August 31.5. What is the price of Job 93?6. CONCEPTUAL CONNECTION Partwaythough the year, Jagjit bought a bulldozerto handle larger jobs. The bulldozer cost$38,000 and is needed for largercommercial jobs. Smaller residential jobscan still be done with the smaller bobcattractor. How could the bulldozer's cost beapplied to only those jobs that need thelarger equipment?

Name: Applying Overhead to Jobs, Costing JobsJagjit Company designs and bui
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Description: Applying Overhead to Jobs, Costing JobsJagjit Company designs and builds retainingwalls for individual customers. On August 1,there were two jobs in process: Job 93 with abeginning balance of $8,750 and Job 94 with abeginning balance of $7,300. Jagj

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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.

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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