A company prepares its accounts on monthly basis. A Company had no jobs in progress at the beginning of month and no beginning inventories. It started only 3 jobs during month Job 101, Job 102 and Job 103. Job 101 was completed and sold by the end of month and Job 103 was incomplete at the end of month and Job 102 is complete but not sold. The company uses a plant wide predetermined overhead based on direct labor hours. Job 101 Job 102 Job 103 Direct Materials $18,000 $11.000 $19,500 Direct Labor Cost $21.000 $7,500 S22,000 Actual Direct Labor hours 1,400 500 1,300 worked The following additional information is available for the company as a whole and for Job 101, Job 102 and Job 103 (all data relates to month) Estimated total fixed MOH S30,000 Estimated variable MOH per direct labor hours Estimated total direct labor hours to be worked $2 3,000 Total actual MOH cost incurred $40,000 Requirements: - If Job 101 includes 250 units what is its unit product cost?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A company prepares its accounts on monthly basis. A Company had no jobs in
progress at the beginning of month and no beginning inventories. It started only 3
jobs during month Job 101, Job 102 and Job 103. Job 101 was completed and sol
by the end of month and Job 103 was incomplete at the end of month and Job
102 is complete but not sold. The company uses a plant wide predetermined
overhead based on direct labor hours.
Job 101
Job 102
Job 103
Direct Materials
$18,000
$11,000
$19,500
Direct Labor Cost
$21.000
$7,500
$22,000
Actual
Direct
Labor
hours 1,400
500
1,300
worked
The following additional information is available for the company as a whole and
for Job 101, Job 102 and Job 103 (all data relates to month)
Estimated total fixed MOH
$30,000
Estimated vanable MOH per direct labor hours
Estimated total direct labor hours to be worked
Total actual MOH cost incurred
$2
3,000
$40,000
Requirements: -
If Job 101 includes 250 units what is its unit product cost?
Transcribed Image Text:A company prepares its accounts on monthly basis. A Company had no jobs in progress at the beginning of month and no beginning inventories. It started only 3 jobs during month Job 101, Job 102 and Job 103. Job 101 was completed and sol by the end of month and Job 103 was incomplete at the end of month and Job 102 is complete but not sold. The company uses a plant wide predetermined overhead based on direct labor hours. Job 101 Job 102 Job 103 Direct Materials $18,000 $11,000 $19,500 Direct Labor Cost $21.000 $7,500 $22,000 Actual Direct Labor hours 1,400 500 1,300 worked The following additional information is available for the company as a whole and for Job 101, Job 102 and Job 103 (all data relates to month) Estimated total fixed MOH $30,000 Estimated vanable MOH per direct labor hours Estimated total direct labor hours to be worked Total actual MOH cost incurred $2 3,000 $40,000 Requirements: - If Job 101 includes 250 units what is its unit product cost?
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