The following information applies to Job 730 completed by Sweeny Manufacturing C
ID: 2500138 • Letter: T
Question
The following information applies to Job 730 completed by Sweeny Manufacturing Company during October 2013. The amount of labor cost for the job was $89,850. Applied overhead amounted to $105,000. The project was completed and delivered to Perez Company at a contract price of $303,000. Sweeny recognized a gross profit of $50,400 on the job.
Determine the amount of raw materials used to complete Job 730.
The following information applies to Job 730 completed by Sweeny Manufacturing Company during October 2013. The amount of labor cost for the job was $89,850. Applied overhead amounted to $105,000. The project was completed and delivered to Perez Company at a contract price of $303,000. Sweeny recognized a gross profit of $50,400 on the job.
Explanation / Answer
Answer: The cost of Job 730 is shown below:
Contract price $303,000
Cost of job ?
Gross profit $ 50,400
The cost of the job is $252600 (i.e., $303,000 - $50,400).
The cost of raw materials used in Job 730 is shown below:
Materials $ ?
Labor 89850
Overhead 105,000
Total $252600
The cost of raw materials is $57750 ($252600- $89850 -$105,000)
The amount of raw materials used to complete Job 730 is $57750.
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