Chapter 12 Solutions2

Chapter 12 Solutions2 - Chapter 12 Problems 1. ABC...

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Chapter 12 Problems 1. ABC Manufacturing Co. is currently working on two jobs.  The job order cost sheets for Job  101 and Job 102 provide the following information: Job 101 Job 102 Direct Materials $12,000 $15,000 Direct Labor $24,000 $45,000 ABC applies overhead jobs at $.60 per direct labor dollar.  Job 102 is finished and has  been sold for $100,000.  ABC’s gross margin on Job 102 is Use the following information to answer the next two questions.   Southern Industries uses  job order costing.  The following information pertains to a recent month: Job 1 Job 2 Job 3 Direct Materials $50 $60 $30 Direct Labor 20 30 10 Southern applies overhead at the rate of 200% of direct labor costs.  By the end of the month,  both Job 1 and Job 2 had been completed and sold.  Job 3 was still in process.   2. At month-end, what was the balance in work in process inventory? Job 103 Direct Materials  $         30  Job 102 Direct Materials 15,000 Direct Labor 45,000 Manufacturing Overhead 27,000    (45,000 * 0.6) 87,000 Sales 100,000 Job Cost (87,000) Gross Margin 13,000
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Direct Labor             10  Manufacturing Overhead             20      (10 * 200%)             60  3. Job 2 was sold for $200.  What was Southern’s gross margin on Job 2? (Ignore any 
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Chapter 12 Solutions2 - Chapter 12 Problems 1. ABC...

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