The Robbins Company manufactures special purpose machines to order. On January 1, there were twojobs in process, #705 and #706. The following costs were applied to these jobs in the prior year:Job No.705$ 5,000706$ 8,000Direct materialDirect laborOverheadTotal4,0003,0004,4003,300$13,400$14,300During January, the following transactions took place:Raw material costing $40,000 was purchased on account.Jobs #707, #708, and #709 were started and the following costs were applied tothem:JOB707708$10,000709$7,0004,000Direct materials$3,000Direct labor5,0006,000Job #705 and Job #706 were completed after incurring additional direct labor costsof $2,000 and $4,000, respectivelyWages paid to production employees during January totaled $25,000.Depreciation for the month of January totaled $10,000.Utilities bills in the amount of $10,000 were paid for operations during December.Utilities bills totaling $12,000 were received for January operations.Supplies costing $2,000 were used.Miscellaneous overhead expenses totaled $24,000 for January.Actual overhead is applied to individual jobs at the end of each month using a rate based on actualdirect labor costs.Requirement:1. Determine the January overhead rate.Determine the cost of each job.3. Determine the total cost of goods manufactured.2.

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Description: The Robbins Company manufactures special purpose machines to order. On January 1, there were twojobs in process, #705 and #706. The following costs were applied to these jobs in the prior year:Job No.705$ 5,000706$ 8,000Direct materialDirect laborOv

Job order costing is used for personalized products or services to fulfill some particular orders or…

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The Robbins Company manufactures special purpose machines to order. On January 1, there were two jobs in process, #705 and #706. The following costs were applied to these jobs in the prior year:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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