Tarzan Co. employs a job order cost system. Its manufacturing activities in July 2019, its first month of operation, are summarized as follows: JOB NUMBERS 1201 1202 1203 1204 Direct Materials 7,000 5,800 11,600 5,000 Direct Labor Cost 6,600 6,000 8,400 2,400 Direct Labor Hours 1,100 1,000 1,400 400 Units produced 200 100 1,000 300 Manufacturing overhead is applied at a rate of P2 per direct labor hour for variable overhead and P3 per hour for fixed overhead. Jobs 1201, 1202, and 1203 were completed in July. What is the cost of the completed jobs?

Tarzan Co. employs a job order cost system. Its manufacturing activities in July 2019, its first month of operation, are summarized as follows: JOB NUMBERS 1201 1202 1203 1204 Direct Materials 7,000 5,800 11,600 5,000 Direct Labor Cost 6,600 6,000 8,400 2,400 Direct Labor Hours 1,100 1,000 1,400 400 Units produced 200 100 1,000 300 Manufacturing overhead is applied at a rate of P2 per direct labor hour for variable overhead and P3 per hour for fixed overhead. Jobs 1201, 1202, and 1203 were completed in July. What is the cost of the completed jobs?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

Tarzan Co. employs a job order cost system. Its manufacturing activities in July 2019, its first month of operation, are summarized as follows:

	JOB NUMBERS
	*1201*	*1202*	*1203*	*1204*
Direct Materials	7,000	5,800	11,600	5,000
Direct Labor Cost	6,600	6,000	8,400	2,400
Direct Labor Hours	1,100	1,000	1,400	400
Units produced	200	100	1,000	300

Manufacturing overhead is applied at a rate of P2 per direct labor hour for variable overhead and P3 per hour for fixed overhead.

Jobs 1201, 1202, and 1203 were completed in July.

What is the cost of the completed jobs?

Definition Definition Accounting technique that tracks the costs of materials, labor, and overhead for a particular job. The main purpose of job costing is to determine the profit or loss for each job. Repetitive work or poorly allocated employees can be addressed for the upcoming project through job costing.

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