question archive Job Costs At the end of August, Kaye Company had completed Jobs 40 and 42

Job Costs At the end of August, Kaye Company had completed Jobs 40 and 42

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Job Costs

At the end of August, Kaye Company had completed Jobs 40 and 42. Job 40 is for 1,000 units, and Job 42 is for 500 units.

The following data relate to these two jobs:

On August 4, raw materials were requisitioned for production as follows: 200 units for Job 40 at $24 per unit and 900 units for Job 42 at $18 per unit.

During August, Kaye Company accumulated 700 hours of direct labor costs on Job 40 and 1,000 hours on Job 42. The total direct labor was incurred at a rate of $24 per direct labor hour for Job 40 and $10 per direct labor hour for Job 42.

The predetermined factory overhead rate is $6.00 per direct labor hour.

a. Determine the balance on the job cost sheets for Jobs 40 and 42 at the end of August.

Job 40 $
Job 42 $

b. Determine the cost per unit for Jobs 40 and 42 at the end of August. If required, round your answers to the nearest cent.

Job 40 $
Job 42 $

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a. Determine the balance on the job cost sheets for Jobs 40 and 42 at the end of August.

  Job 40 Job 42
Direct material 200*24=4800 900*18=16200
Direct labour 700*24 = 16800 1000*10 = 10000
Overhead applied 700*6 = 4200 1000*6 = 6000
Total Job cost 25800 32200
     

b. Determine the cost per unit for Jobs 40 and 42 at the end of August. If required, round your answers to the nearest cent.

Job 40 = 25800/1000 = 25.8 per unit

Job 42 = 32200/500 = 64.4 per unit