Question

At the end of April, Cavy Company had completed Job 766 and 765. According to the individual job cost sheets the information is as follows:Job Direct Materials Direct Labor Machine HoursJob 765 $6,160 $1,848 22Job 766 10,944 3,456 64Job 765 consisted of 132 units, and Job 766 consisted of 192 units.Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $153 per hour.

a. Determine the balance on the job cost sheets for each job.Job 765 $Job 766 $
b. Determine the cost per unit at the end of April. Round to the nearest cent.Job 765 $Job 766 $

Answer 1

a)

Job Direct Materials Direct Labor overhead Total Job cost

Job 765 $6,160 $1,848 $3,366 $11,374

Job 766 $10,944 $3,456 $9,792 $24,192

b)

For Job 765 = $86.167

For Job 765 = $126

Step-by-step explanation:

Data provided in the question:

Job Direct Materials Direct Labor Machine Hours

Job 765 $6,160 $1,848 22

Job 766 $10,944 $3,456 64

Overhead rate = $153 per hour

Job 765 consisted = 132 units

766 consisted = 192 units

now,

Overhead = Machine Hours × Overhead rate

For Job 765 = 22 × 153

= $3366

For Job 766 = 64 × 153

= $9792

Total job cost i.e balance on the job cost sheets

= Direct Materials + Direct Labor + overhead

a)

Job Direct Materials Direct Labor overhead Total Job cost

Job 765 $6,160 $1,848 $3,366 $11,374

Job 766 $10,944 $3,456 $9,792 $24,192

b)

Cost per unit = [ Total job cost ] ÷ Total units

For Job 765 = $11,374 ÷ 132

= $86.167

For Job 765 = $24,192 ÷ 192

= $126