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Job Costs At the end of April, Ingram Company had completed Jobs 50 and 51. Job

ID: 2532115 • Letter: J

Question

Job Costs

At the end of April, Ingram Company had completed Jobs 50 and 51. Job 50 is for 500 units, and Job 51 is for 200 units.

The following data relate to these two jobs:

On April 20, raw materials were requisitioned for production as follows: 800 units for Job 50 at $10 per unit and 1,300 units for Job 51 at $10 per unit.

During April, Ingram Company accumulated 400 hours of direct labor costs on Job 50 and 500 hours on Job 51. The total direct labor was incurred at a rate of $20 per direct labor hour for Job 50 and $10 per direct labor hour for Job 51.

The predetermined factory overhead rate is $14.00 per direct labor hour.

a. Determine the balance on the job cost sheets for Jobs 50 and 51 at the end of April.

b. Determine the cost per unit for Jobs 50 and 51 at the end of April. Round all answers to the nearest whole cent.

Job 50 $ Job 51 $

Explanation / Answer

a. Determine the balance on the job cost sheets for Jobs 50 and 51 at the end of April.

b. Determine the cost per unit for Jobs 50 and 51 at the end of April. Round all answers to the nearest whole cent

Job 50 = 21600/500 = 43.20 per unit

Job 51 = 25000/200 = 125 per unit

Job 50 Job 51 Direct material 8000 13000 Direct labour 400*20 = 8000 500*10 = 5000 Overhead applied 400*14 = 5600 500*14 = 7000 Total job cost 21600 25000
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