Chapter 5, Problem 34P

1.

To determine

Prepare a job order cost sheet. Calculate the expected per unit cost. Explain if N Incorporation should accept the price offered by the prospective customer and give reason.

2.

To determine

Compute the gross profit that N Incorporation expects to earn on the job.

3.

To determine

Compute the actual per unit cost and unexpected loss. Explain some possible reasons that differs actual cost from projected cost.

4.

To determine

Give a response and justify with the explanation for addition of the under applied overhead cost to the customer’s bill.