Question

company production was working on Job 1 and Job 2 during the month. Of the $780 in direct materials, $375 in materials was requested for Job 1. Direct labor cost, including payroll taxes, are $23 per hour, and employees worked 18 hours on Job 1 and 29 hours on Job 2. Overhead is applied at the rate of $20 per direct labor hours. Prepare job order cost sheets for each job.

Answer 1

To prepare the job order cost sheets for Job 1 and Job 2, we need to calculate the direct materials, direct labor, and overhead costs for each job. The job order cost sheet will then show the total cost incurred for each job.

Job 1:

Direct materials:

Requested materials = $375

Direct labor:

18 hours worked x $23 per hour = $414

Overhead:

18 hours worked x $20 per hour = $360

Total cost:

Direct materials + Direct labor + Overhead = $375 + $414 + $360 = $1,149

Therefore, the job order cost sheet for Job 1 would be:

Job 1

Direct Materials: $375

Direct Labor: $414

Overhead: $360

Total Cost: $1,149

Job 2:

Direct materials:

$780 total direct materials - $375 used for Job 1 = $405

Direct labor:

29 hours worked x $23 per hour = $667

Overhead:

29 hours worked x $20 per hour = $580

Total cost:

Direct materials + Direct labor + Overhead = $405 + $667 + $580 = $1,652

Therefore, the job order cost sheet for Job 2 would be:

Job 2

Direct Materials: $405

Direct Labor: $667

Overhead: $580

Total Cost: $1,652

Step-by-step explanation: