Problem (20 points) The following information pertains to MIMP Company use job-o

Question

Problem (20 points) The following information pertains to MIMP Company use job-order costing system: for the month of September. They Oveshead 456 458 502 1,200 1,000 1,400 34,500 $5,000 ? (N) 2 0 ? (a) $5,550 $3,200 $5,870 Overhead is applied for Job and Job 502. The total cost of Jobs 456 and 458 are identical. All jobs were begun in September. Assume that Jobs 456 and 502 are incomplete at the end of September a. Calculate the values corresponding to ), (i), (ii), and (iv). (8 pts) b. What is the cost of goods manufactured at the end of September? (6 pts) c. What is the cost per unit for Job 458? Is it higher or lower than the cost per unit for 456 at 140% of direct labor cost and at 150% for Job 458 Jobs 456 and 502? Explain why. (6 pts)

Explanation / Answer

Amount $ I Job Number Units Manufactured Direct Materials Direct Labor Over Head Total Cost Per Unit Cost a b c d e f = e/a 456                                    1,200             3,200          4,500       6,300       14,000        12 458                                    1,000             1,500          5,000       7,500       14,000        14 502                                    1,400             5,670          3,700       5,550       14,920        11       42,920 1 For Job 456 Over Head is 140 % of the Direct Labor 2 For Job 458 Over Head is 150 % of the Direct Labor 3 Total Cost of the Job 458 is also 14000 as identical with the Job 456 - Hence Bal Fig is Direct Meterials 4 For Job 502 , Direct Labour = Over head*100/150 II Cost of Goods Manufactired at the end of the Sep is $42920 III For Job 458 Per uniit cost is $14/- due to a) Labour value high and b) Numbet of units produced also low compared to Job 456 & 502

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