E2-6 - E2-6 A job cost sheet of Battle Company is given...

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Unformatted text preview: E2-6 A job cost sheet of Battle Company is given below. Job Cost Sheet JOB NO. 469 Quantity: 2,000 ITEM White Lion Cages Date Requested 7/2 FOR Tesla Company Date Completed 7/31 Date 7/10 12 15 22 24 27 31 Direct Materials 828 900 1,600 1,500 540 648 4828 1360 1632 7820 3.91 Direct Manufacturing Labor Overhead 440 380 528 456 Cost of completed job: Direct materials Direct labor Manufacturing overhead Total cost Unit cost Instructions (a) Answer the following questions. (1) What are the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job? (2) What is the predetermined manufacturing overhead rate? (3) What are the total cost and the unit cost of the completed job? (b) Prepare the entry to record the completion of the job. (1) Source documents are: Invoice, which indicates that a purchase was made, the quantity purchased, who made the purchase, who the seller was. Another source document is the actual work ticket, which indicates the hours worked and by whom. A depreciation schedule and utility bills are also examples of source documents. (2) Predetermined manufacturing overhead rate: Overhead divided by Units produced: 1632 divided by 2000 = 0.816 per unit. (3) Total cost is 7820. To find the unit cost: total cost divided by units completed: 7820 / 2000 = 3.91 Prepare the entry to record the completion of the job. D M DL OH WIP 4828 4828 1360 1360 1632 1632 4828 7820 = 1360 1632 7820 F inished Goods 7820 F inished Goods 7520 W IP 7520 ...
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E2-6 - E2-6 A job cost sheet of Battle Company is given...

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