Demo-case-7 - Demonstration Case Scenario (Job Costing...

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Demonstration Case Scenario (Job Costing chapter): De Anza Welding, Inc. specializes in custom steel frames and uses job costing to account for its operations. The following information is available as of May 1 for the WIP (work- in-process inventory) account. Job# Direct materials Direct labor Manufacturing overhead Total costs 304 $3,000 $1,800 $2,520 $7,320 306 4,000 2,100 2,940 9,040 Total costs $7,000 $3,900 $5,460 $16,360 De Anza Welding pays an hourly rate of $15 for direct labor. The manufacturing overhead costs are applied to jobs based on the direct labor hours. During the month of May, De Anza Welding spends $5,800 for materials and $4,650 for manufacturing overhead. The operations in May are summarized below. Job# Material requisition summary Time card summary (Hours) 304 $1,100 40 306 900 30 307 2,800 110 308 750 25 Total $5,550 205 Jobs 304, 306, and 307 are completed in May but only Jobs 304 and 307 are delivered to customers. Required: Determine
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Demo-case-7 - Demonstration Case Scenario (Job Costing...

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