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At the end of April, Cavy Company had completed Job 766 and 765. Job 766 is for

ID: 2426754 • Letter: A

Question

At the end of April, Cavy Company had completed Job 766 and 765. Job 766 is for 660 units, and Job 765 is for 940 units. According to the individual job cost sheets the information is as follows:

Job 765 consisted of 180 units, and Job 766 consisted of 228 units.

Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $147 per hour.

a. Determine the balance on the job cost sheets for each job.

b. Determine the cost per unit at the end of April. Round to the nearest cent.

Job Direct Materials Direct Labor Machine Hours Job 765 $8,400 $2,520 30 Job 766 $12,996 $4,104 76

Explanation / Answer

a. Determine the balance on the job cost sheets for each job Job 765 = 5498 Job 766 = 1051 Calculation cost per unit = Direct Material cost /opeing units Job 765 = 8400/660 13 Balance job cost = opening stock - closing stock *coat per unit Job 765 = 12996/9400 1 Balance job cost = opening stock - closing stock *coat per unit b. Determine the cost per unit at the end of April. Round to the nearest cent. Job 766 Job 765 Opeing stock units 660 940 Direct Materials 8,400 12,996 Direct Labor 2,520 4,104 Machine Hours 4410 11172 Closing stock units 228 180 Total cost 15,330 28,272 Cost per unit 35 37

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