### Job Cost System Analysis for Sturgis ManufacturingSturgis Manufacturing produces one model of precision tool and utilizes a job cost system to account for costs. The following information from the most recent fiscal year is provided for analysis:#### Summary of Costs:- **Total Manufacturing Cost**: $2,578,250 - This cost is based on actual direct materials, actual direct labor, and applied manufacturing overhead. - Of this total amount, 40% is comprised of direct costs.- **Manufacturing Overhead Application**: Applied to work in process at 250 percent of direct materials dollars.#### Required Analysis:The task is to compute the actual direct materials used, actual direct labor, and applied manufacturing overhead.#### Cost Breakdown:- **Direct Materials Used**: \$618,750- **Direct Labor**: \$412,500- **Manufacturing Overhead Applied**: \$1,546,875The information above is summarized in the table below:| Cost Description | Amount ||-----------------------------------|-------------|| Direct materials used | $618,750 || Direct labor | $412,500 || Manufacturing overhead applied | $1,546,875 |Understanding these details is crucial for accurately tracking and managing production costs within a job cost system, thereby ensuring effective financial oversight and resource allocation for Sturgis Manufacturing.

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Description: ### Job Cost System Analysis for Sturgis ManufacturingSturgis Manufacturing produces one model of precision tool and utilizes a job cost system to account for costs. The following information from the most recent fiscal year is provided for analysis

The total manufacturing costs comprises direct costs and overhead applied costs. The direct costs…

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Sturgis Manufacturing produces one model of precision tool and accounts for costs using a job cost system. Information from the most recent fiscal year indicates the following: • Total manufacturing cost during the year was $2,578,250 based on actual direct materials, actual direct labor, and applied manufacturing overhead. Of this amount, 40 percent was comprised of direct costs. • Manufacturing overhead was applied to work in process at 250 percent of direct materials dollars. Required: Compute actual direct materials used, actual direct labor, and applied manufacturing overhead. Direct materials used Direct labor Manufacturing overhead applied $ 618,750 $ 412,500 $ 1,546,875

Sturgis Manufacturing produces one model of precision tool and accounts for costs using a job cost system. Information from the most recent fiscal year indicates the following: • Total manufacturing cost during the year was $2,578,250 based on actual direct materials, actual direct labor, and applied manufacturing overhead. Of this amount, 40 percent was comprised of direct costs. • Manufacturing overhead was applied to work in process at 250 percent of direct materials dollars. Required: Compute actual direct materials used, actual direct labor, and applied manufacturing overhead. Direct materials used Direct labor Manufacturing overhead applied $ 618,750 $ 412,500 $ 1,546,875

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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Required information [The following information applies to the questions displayed below.] Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year: Molding Fabrication Total Machine-hours 28,000 38,000 66,000 Fixed manufacturing overhead costs $ 760,000 $ 260,000 $ 1,020,000 Variable manufacturing overhead cost per machine-hour $ 5.10 $ 5.10 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It provided the following information related to those two jobs: Job D-70: Molding Fabrication Total Direct materials cost $ 373,000 $ 327,000 $ 700,000 Direct labor cost $ 220,000 $ 130,000 $ 350,000 Machine-hours 23,000 5,000 28,000 Job C-200: Molding Fabrication Total Direct materials cost $ 210,000 $ 240,000…
Required information [The following information applies to the questions displayed below.] Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year: Molding Fabrication Total Machine-hours 28,000 38,000 66,000 Fixed manufacturing overhead costs $ 760,000 $ 260,000 $ 1,020,000 Variable manufacturing overhead cost per machine-hour $ 5.10 $ 5.10 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It provided the following information related to those two jobs: Job D-70: Molding Fabrication Total Direct materials cost $ 373,000 $ 327,000 $ 700,000 Direct labor cost $ 220,000 $ 130,000 $ 350,000 Machine-hours 23,000 5,000 28,000 Job C-200: Molding Fabrication Total Direct materials cost $ 210,000 $ 240,000…