Spock Ltd uses a job costing system. Un I had a balance of $8 600, made up as follows: Job No. 501 502 ctober Direct materials Direct Labour Overhead costs $960 $1.060 $600 $580 $2 480 $2 920 Total $4 500 $4 100 During October direct materials and direct labour costs, and direct labour hours were:

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Spock Ltd uses a job costing system. On 1 October 20X1, work in process account
had a balance of $8 600, made up as follows:
Job No. Direct materials
501
$2 480
502
$2 920
Direct Labour Overhead costs
$960
$1.060
$600
$580
Job No.
501
During October direct materials and direct labour costs, and direct labour hours
were:
Direct materials
$400
$800
$6 000
Direct Labour
$2 240
$3 600
$1 920
Total
$4.500
$4 100
Required:
(a) Determine the company's predetermined overhead rate.
(b) Prepare the job cost sheet for the company.
Overhead is allocated to jobs on a direct labour hour basis. The company is
expected to operate at a volume of 40 000 direct labour hours and overhead costs is
expected to be $120 000 annually. During the month Job 501, 502 were completed
and transferred to finished goods.
代码语言
Direct labour hours
800
900
600
Transcribed Image Text:Spock Ltd uses a job costing system. On 1 October 20X1, work in process account had a balance of $8 600, made up as follows: Job No. Direct materials 501 $2 480 502 $2 920 Direct Labour Overhead costs $960 $1.060 $600 $580 Job No. 501 During October direct materials and direct labour costs, and direct labour hours were: Direct materials $400 $800 $6 000 Direct Labour $2 240 $3 600 $1 920 Total $4.500 $4 100 Required: (a) Determine the company's predetermined overhead rate. (b) Prepare the job cost sheet for the company. Overhead is allocated to jobs on a direct labour hour basis. The company is expected to operate at a volume of 40 000 direct labour hours and overhead costs is expected to be $120 000 annually. During the month Job 501, 502 were completed and transferred to finished goods. 代码语言 Direct labour hours 800 900 600
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