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 $8,650, and Job 94 with a beginning balance of $7,270. Jagjit applies overhead at the rate of $9 per direct labor hour. Direct labor wages average $16 per hour. Data on August costs for all jobs are as follows:   Job 93 Job 94 Job 95 Job 96 Direct materials $910 $4,590 $3,330 $1,270 Direct labor cost 2,080 4,800 2,400 960   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. efer to the list below for the exact wording of text items within your job-order cost sheets. Amount Descriptions   Applied overhead   Beginning balance   Direct labor   Direct materials   Total     Required: 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. 4. Calculate the balance in Work in Process on August 31. 5. What is the price of Job 93? 6. CONCEPTUAL CONNECTION: Partway through the year, Jagjit bought a bulldozer to handle larger jobs. The bulldozer cost $38,500 and is needed for larger commercial jobs. Smaller residential jobs can still be done with the smaller bobcat tractor. How could the bulldozer’s cost be applied to only those jobs that need the larger equipment? 1. Calculate the number of direct labor hours that were worked on each job in August. Job 93      DLH Job 94      DLH Job 95      DLH Job 96      DLH   2. Calculate the overhead applied to each job during the month of August. Job 93     Job 94     Job 95     Job 96     3. Prepare job-order cost sheets for each job as of the end of August. Refer to Amount Descriptions for the exact wording of text items within your job-order cost sheets. All amount cells must have an entry; enter zeros as needed.   Jagjit Company Job-Order Cost Sheets August 31 1   Job 93 Job 94 Job 95 Job 96 2 Beginning balance         3           4           5           6           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    .

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Chapter1: Financial Statements And Business Decisions
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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 $8,650, and Job 94 with a beginning balance of $7,270. Jagjit applies overhead at the rate of $9 per direct labor hour. Direct labor wages average $16 per hour. Data on August costs for all jobs are as follows:
  Job 93 Job 94 Job 95 Job 96
Direct materials $910 $4,590 $3,330 $1,270
Direct labor cost 2,080 4,800 2,400 960
 
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.
efer to the list below for the exact wording of text items within your job-order cost sheets.
Amount Descriptions  
Applied overhead  
Beginning balance  
Direct labor  
Direct materials  
Total

 

  Required:
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.
4. Calculate the balance in Work in Process on August 31.
5. What is the price of Job 93?
6. CONCEPTUAL CONNECTION: Partway through the year, Jagjit bought a bulldozer to handle larger jobs. The bulldozer cost $38,500 and is needed for larger commercial jobs. Smaller residential jobs can still be done with the smaller bobcat tractor. How could the bulldozer’s cost be applied to only those jobs that need the larger equipment?
1. Calculate the number of direct labor hours that were worked on each job in August.
Job 93  
 
 DLH
Job 94  
 
 DLH
Job 95  
 
 DLH
Job 96  
 
 DLH
 
2. Calculate the overhead applied to each job during the month of August.
Job 93  
 
Job 94  
 
Job 95  
 
Job 96  
 
3. Prepare job-order cost sheets for each job as of the end of August. Refer to Amount Descriptions for the exact wording of text items within your job-order cost sheets. All amount cells must have an entry; enter zeros as needed.
 
Jagjit Company
Job-Order Cost Sheets
August 31
1
 
Job 93
Job 94
Job 95
Job 96
2
Beginning balance
 
 
 
 
3
 
 
 
 
 
4
 
 
 
 
 
5
 
 
 
 
 
6
 
 
 
 
 
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 
 
.
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