Fundamentals of Cost Accounting
6th Edition
ISBN: 9781260708783
Author: LANEN, William
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Textbook Question
Chapter 7, Problem 57P
On September 1, two jobs were in process at Pete’s Patios. Details of the jobs follow:
Materials Inventory on September 1 totaled $11,040, and $1,392 worth of materials was purchased during the month. Indirect materials of $192 were withdrawn from materials inventory. On September 1, finished goods inventory consisted of two jobs, PP-12, costing $4,704, and PP-14, with a cost of $1,896. Costs for both jobs were transferred to Cost of Services Billed during the month.
Also during September, Jobs PP-24 and PP-30 were completed. Completing Job PP-24 required an additional $2,720 in direct labor. The completion costs for Job PP-30 included $1,296 in direct materials and $8,000 in direct labor.
Pete’s Patios used a total of $3,768 of direct materials (excluding the $192 indirect materials) during the period, and total direct labor costs during the month amounted to $16,320.
Required
Compute the costs of Jobs PP-24 and PP-30 and the balances in the September 30 inventory accounts.
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Chapter 7 Solutions
Fundamentals of Cost Accounting
Ch. 7 - What are characteristics of companies that are...Ch. 7 - Direct labor-hours and direct labor dollars are...Ch. 7 - What is the purpose of having two manufacturing...Ch. 7 - How does the accountant know what to record for...Ch. 7 - How is job costing in service organizations (for...Ch. 7 - What are the costs of a product using normal...Ch. 7 - Prob. 7RQCh. 7 - What are three common sources of improprieties in...Ch. 7 - In the context of job costing, what are projects?...Ch. 7 - Why do most companies use normal or standard...
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