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    BBA 6th

    Uploaded by

    Fazal Wahab
    The document provides information about job order costing for Frog Machine Works. It includes direct material and labor costs for job 642, and calculates the total manufacturing cost and sale price of the job by adding a 40% markup to the total cost.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    BBA 6th

    Uploaded by

    Fazal Wahab
    355 views3 pages
    The document provides information about job order costing for Frog Machine Works. It includes direct material and labor costs for job 642, and calculates the total manufacturing cost and sale price of the job by adding a 40% markup to the total cost.

    Original Description:

    the notes BBA

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    © © All Rights Reserved

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    The document provides information about job order costing for Frog Machine Works. It includes direct material and labor costs for job 642, and calculates the total manufacturing cost and sale price of the job by adding a 40% markup to the total cost.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    355 views3 pages

    BBA 6th

    Uploaded by

    Fazal Wahab
    The document provides information about job order costing for Frog Machine Works. It includes direct material and labor costs for job 642, and calculates the total manufacturing cost and sale price of the job by adding a 40% markup to the total cost.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 3

    Chapter 5

    JOB ORDER COSTING

    Question: 2

    Frog machine works collects its cost data by the job order cost accumulations procedure.
    For job 642 the following data are available:

    Direct Materials: DIRECT LABOUR

    9/14 issued……………..$1,200 Week of sept 20--- 180hrs@ $6.20/hrs.

    9/20 issued…………….. 662 week of sept 26 ---140 hrs. @7.30/hrs.

    9/22 issued…………….. 480

    Factory overhead is applied at the rate of 3.5 per direct labor hour

    Required:

    (1) The appropriate information entered on a job order cost sheet.


    (2) The sale price of the job, assuming that it was contracted with a markup of 40%of cost

    Answer:

    Requirement: 1 FORGE MACHINE WORKS

    Job order cost sheet –job 642

    Direct Materials:
    9/14 issued 1200
    9/20 issued 662
    9/22 issued 480 2342

    DIRECT LABOUR :
    sept 20 180*6.20 1116
    sept 26 140*7.30 1022 2138
    Factory overhead Cost:
    sept 20 180*3.50 630
    sept 26 140*3.50 490 1120
    Total manufacturing 5600
    Requirement: 2

    Here markup means profit so the sale price will be 5600+40%of 5600

    Calculation:

    Cost = 6500

    (+) Markup 5600*40/100 = 2240

    Sale price = 7840


    Problem no: 5-1

    Tedyuscung Company produce special machines made customer specification. The following data
    pertain to job 1106:

    Customer: Markem machine shop Date of started: 11/4/19---

    Customer’s order no: C696 Date of finished: 11/18/19----

    Date: October 27 Total cost to manufacture?

    Description: 18 drilling machine Sale price: $20,425

    WEEK ENDING 11/11(1 st week) WEEK ENDING 11/18(2 nd week)

    Material used, Dep1…………………………. $2,400 $1300

    Direct Labor rate, Dep1……………………. $8.20 per hour $8.20 per hour

    Labor hours used Dep1……………………..300 200

    Direct labor rate, Dep2……………………..$8.00per hour $8.00per hour

    Labor hours used, Dep2……………………..150 70

    Machines hours, Dep2………………………..200 120

    Applied factory overhead, Dep1…………. $4.00 per labor hour $4.00 per labor hour

    Applied factory overhead, Dep2…………$1.80 per Machine hour $1.80 per Machine hour

    Marketing and Administrative cost are charged to each order at a rate of 25% of the cost to
    manufacturing.

    Required:

    A suitable cost sheet showing the above data. Did the company make an adequate profit margin on
    this order?

    SALOUTION:

    JOB ORDER COST SHEET

    Customer: Markem machine shop: JOB 1106

    Customer’s order no: C696: Description: 18 drilling machine

    Direct Material Cost (dep-1):

    1st week cost 2400


    2nd week cost 1300 3700
    Direct Labor Cost (dep-1):
    1st week cost ( 300*8.20) 2460
    2nd week cost (200*8.20) 1640 4100
    Direct Labor Cost (dep-2):

    1st week cost (150*8) 1200


    2nd week cost (70*8) 560 1760
    F O H COST (DEP-1):

    1st week cost (300*4) 1200


    2nd week cost (200*4) 800 2000
    F O H COST (DEP-1):

    1st week cost (200*1.80) 360


    2nd week cost (120*1.80) 216 576
    Total Manufacturing cost 12136

    Requirement 2:

    Tedyuscung Company

    Income statement

    For the year ended…….

    Sale 20425
    (-) Cost (12136)
    Gross profit 8289
    (-)Marketing &administrative Exp 25%of total cost
    (12136*25/100) 3034
    Profit Margin 5255

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