Quiz 17: P17: Job Order Costing Job
Job order costing is a system of allocating manufacturing costs to a product or an individual or group of products. It is a procedure to appraise the job a company takes up. It helps the company to estimate the costs of materials, labor and other costs to be spent while performing a job. Prepare job cost sheets for each of the four jobs started in August in the following manner: Job 8961: Therefore, total factory cost for Job 8961 is $16,229.35. Job 8962: Therefore, total factory cost for Job 8962 is $5,123.75. Job 8963: Therefore, total factory cost for Job 8963 is $11,624.10. Job 8964 : Therefore, total factory cost for Job 8964 is $20,173.05.
Enter the formulas where indicated in the job cost sheet where indicated using cell references. In the direct materials section, the formulas will be quantity multiplied by cost per unit. In the direct labor section, the formulas will be hours multiplied by rate. The ending totals will be calculated by adding the numbers for that section. Because there is no data entered yet, formulas will give the result of $0.00. Formula 8 will be the total number of hours of direct labor and Formula 9 will be the total direct materials cost. Worksheet showing job cost sheet:
Using given data, enter the information for Job 8961 into the appropriate sections of the job cost sheet. Worksheet showing job cost sheet: