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 .
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 .
Chapter1: Financial Statements And Business Decisions
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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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.
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| Job 94 |
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2. Calculate the overhead applied to each job during the month of August.
| Job 93 |
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| Job 95 |
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| Job 96 |
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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.
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4. Calculate the balance in Work in Process on August 31.
The work in process balance on August 31 is
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5. What is the price of Job 93?
The price of Job 93 is
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