Question

Waterways Problem 02 a-c (Part Level Submission) Waterways has two major public park projects to provide with comprehensive irrigation in one of its service locations this month. Job 357 and Job K52 involve 15 acres of landscaped terrain, which will require special-order, sprinkler heads to meet the specifications of the project. Using a job cost system to produce these parts, the following events occurred during December Raw materials were requisitioned from the company's inventory on December 2 for $5,097; on December 8 for $1,065, and on December 14 for $3,462. In each instance, two-thirds (2/3) of these materials were for 357 and the rest for K52. Six time tickets were turned in for these two projects for a total amount of 18 hours of work. All the workers were paid $15 per hour. The time tickets were dated December 3, December 9, and December 15. On each of those days, 6 labor hours were spent on these jobs, two-thirds (2/3) for 357 and the rest for K52. The predetermined overhead rate is based on machine hours. The expected machine hour use for the year is 2,129 hours, and the anticipated overhead costs are $851,600 for the year. The machines were used by workers on projects K52 and 357 on December 3, 9, and 15. Six machine hours were used for project K52 (2 each day), and 8.5 machine hours were used for project 57 (2.5 the first day and 3 each of the other days). Both of these special orders were completed on December 15, producing 200 sprinkler heads for 357 and 100 sprinkler heads for K52. Additional job order activities during this period included: Dec. 1 Dec. 2 Dec. 12 Dec. 13 Dec. 18 Dec. 21 Dec. 31 Purchased raw materials from Durbin Supply Company on account for $53,000. Issued $39,900 of direct materials from the company's inventory to jobs other than K52 and 157 and $2,900 of indirect materials. Paid Waterways' factory salaries and wages for $65,500. Paid the factory's water bill of $9,000. Transferred $50,300 of costs from other completed jobs to finished goods. Paid the factory's electric bill of $11,800 for Waterways' factory. Made adjusting entries forth factory that included accrued property taxes of $11,900, prepaid insurance of $8,900, and accumulated depreciation of $15,900. (a) Set up the job cost sheets for Job No. 357 and Job No. K52. Determine the total cost for each manufacturing special order for these jobs. (Round unit costs to 2 decimal places, e.g. 12.25.) Job No. 357 Job No. K52 Total Cost $ Unit Cost $

Answer 1

In this problem we have to find the job costs of J57 and K52 using relevant information. However it must be noted that additional information has been ignored as it pertains information for other job orders and the information regarding common overheads are apportioned using machine hour rate
No. computation of Job cost for Job Is Date : 1 Jobs J57 & KS2 Job ksz Particulars - Direct material CWNID 6420:67 3210-33 Direct Labour CWN2) 180.00 qo.co Prime cost 6600.67 3300:33 - Add Overheads WNB 2400 3400 Total.cost A] 9000:67 6700.33. Number of units B] 200 100 45.00 67.00 Rote per veit [AB]

Raw Materials allocation Porticulars Dec 2 requisition Dec 8 requisition Dec lhe requisition 5097 1067 3467 9631 2/3 43 557 6420.67 K52 3210:33 O WN 2 Total - Direct Labour Porticulars Time taken for both Rote per Labour hour = jobs 18 $15/hr Labour hours Labour hours Labour hours on on on Dec 3 Deca Dec 15 = = - 6hrs 6hrs 6hrs 18 hrs IS 270_ X Labltr

270 2/3 Ya K52 Tsa $ 180 WN3 Overheads Overhead rate per hours - Total Overheads estimated total cotto. WN 3 Overheads Machine overhead rate Estimatedl Total overheads Estimated Total Machine and HouN - - $ sata $ 851.600 2129cs 400 per machine hour i

WN 3 Overheads Ciro continued..) rate per machine hours = HOO A particulars K52 machine Hours used | rate per machine hour [B] $400 557 8.5 $400 Machine Overheads allocated CAXB] $2H00 $3400