Chapter 3, Problem 3.23AE

Determine the cost of a job (Learning Objectives 2, 3, & 4)

Fontaine Furniture started and finished Job 310 during April. The company’s records show that the following direct materials were requisitioned for Job 310:

Lumber: 45 units at $4 per unit

Padding: 13 yards at $14 per yard

Upholstery fabric: 25 yards at $30 per yard

Labor time records show the following employees (direct labor) worked on Job 310:

Penny Rawls: 12 hours at $13 per hour

Mark Frizzell: 16 hours at $22 per hour

Fontaine allocates manufacturing overhead at a rate of $12 per direct labor hour.

Requirements

1. 1. Compute the total amount of direct materials, direct labor, and manufacturing overhead that should be shown on Job 310’s job cost record.
2. 2. Job 310 consists of twelve recliners. If each recliner sells for $750, what is the gross profit per recliner?