Question

A job cost sheet of Ivanhoe Company is given below. JOB NO. 469 Job Cost Sheet Quantity White Lion Cages Date Requested Todd Company Date Completed Direct Direct Materials Labor FOR 2.500 7/2 7/31 Manufacturing Overhead Date 7/10 700 900 400 1,675 1,575 Cost of completed job: Direct materials Direct labor Manufacturing overhead Total cost Unit cost Your answer is partially correct. Try again. Answer the following questions. (1) What are the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job? Source Documents Direct materials Materials requisition slips Direct labor Time tickets Manufacturing overhead Predetermined overhead rate (2) Overhead is applied on the basis of direct labor cost. What is the predetermined manufacturing overhead rate? Predetermined manufacturing overhead rate 125% (3) What are the total cost and the unit cost of the completed job? (Round unit cost to 2 decimal places, e.g. 1.25.) Total cost of the completed job Unit cost of the completed job Your answer is partially correct. Try again. Prepare the entry to record the completion of the job. (Credit account titles are automatically indented when amount is Debit Credit Date Account Titles and Explanation July 31 Finished Goods Inventory Work in Process Inventory

Answer 1

Cost of Completed Job:

Direct Material:4850 (700+900+1675+1575)

Direct Labor:1500(400+400+700)

Manufacturing Overhead:1875(500+500+875)

Total Cost:8225 (4850+1500+1875)

Unit Cost:3.29(8225/2500) (Note: 2500 is the Quantity on the Job Sheet)

(3)Total Cost of the completed job=8225

Unit Cost of the completed job=3.29

ENTRY TO RECORD COMPLETION OF JOB
Date	Account Title and Explanation	Debit	Credit
July, 31	Finished goods inventory	8225
	Work in process Inventory		8225
	(To record transfer of finished goods to Finished Goods Inventory)