Chapter 3, Problem 3.32BE

Understand the flow of costs in a job cost shop (Learning Objective 2)

Hamilton Lighting manufactures a variety of lamps for lighting specialty stores. In September, Hamilton Lighting received an order from Rose Decor for 34 mission-style table lamps (Model 5A.) The order from Rose Decor became Job Number 951 at Hamilton Lighting.

Materials requisition #1298 for Job 951 shows that a total of $196 of direct materials were used in manufacturing the job. In addition to the materials requisition, the labor time records show that a total of $79 of direct labor costs was incurred in producing these lamps; a total of 8 direct labor hours were worked on this job.

Requirement

Add direct materials and direct labor to the Job Cost Record for Job 951. Manufacturing overhead has already been added to the Job Cost Record for this job. Assume that the job was completed on September 19. Complete the Job Cost Record by calculating the total job cost and the cost per unit. Remember that this job consisted of 34 lamps (units).