Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 51

Job Costing, Departmental Rates, Pivot Tables in Excel (see also 4-45)

Boston Manufacturing Company had the following cost information for May.

	Summary of Direct Materials Requisitions
Department Number	Job Number	Quantity	Cost per Unit
1	88X	6,650	$8.31
1	88Y	2,130	2.52
1	88Z	1,818	9.16
1	88Y	921	4.18
1	88Z	63	3.23

	Summary of Direct Labor Time Tickets
Department Number	Job Number	Hours
1	88X	554
2	88Y	321
2	88Z	618
1	88Y	25
1	88Z	613

The labor rate in Department 1 is $10.50 and in Department 2 is $9.50. The overhead rate in Department 1 is based on direct labor-hours, at $4.50 per hour; in Department 2 the rate is 125 percent of direct labor cost.

Boston had no beginning work-in-process inventory for May. Of the jobs begun in May, Job 88X was completed and sold on account for $86,000, Job 88Y was completed but not sold, and Job 88Z was still in process.

Required

1. Using Pivot Tables in Excel, calculate the direct materials, direct labor, factory overhead, and total costs for each job started in May.

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2. Perform the same calculations as in requirement (1), but assume that labor rates in both departments have increased by 20 percent.

Step 1 of 5

1.?Solution using Pivot Tables: (See Note at end of Solution)