Job Costs At the end of August Kaye Company had completed Jo

Job Costs At the end of August, Kaye Company had completed Jobs 40 and 42. Job 40 is for 200 units, and Job 42 is for 2,000 units. The following data relate to these two jobs: On August 4, raw materials were requisitioned for production as follows: 200 units for Job 40 at $12 per unit and 900 units for Job 42 at $14 per unit. During August, Kaye Company accumulated 600 hours of direct labor costs on Job 40 and 600 hours on Job 42. The total direct labor was incurred at a rate of $16 per direct labor hour for Job 40 and $12 per direct labor hour for Job 42 The predetermined factory overhead rate is $14.00 per direct labor hour. a. Determine the balance on the job cost sheets for Jobs 40 and 42 at the end of August. Job 40 Job 42 b. Determine the cost per unit for Jobs 40 and 42 at the end of August. If required, round your answers to the nearest cent Job 42

Solution

Kaye Company Balance on Job Cost sheet Direct Material Direct Labor Factory Overhead Total Job 40 $               2,400.00 $     9,600.00 $                8,400.00 $ 20,400.00 Job 42 $             12,600.00 $     7,200.00 $                8,400.00 $ 28,200.00 Total $             15,000.00 $   16,800.00 $              16,800.00 Job 40 Job 42 Direct Material(200 Units * $12 Per Unit) for Job 40 and (900 Units @$14 per unit ) for job 42 $               2,400.00 $   12,600.00 Direct Labor(600 Hours @$16 per Hour ) for Job 40 and (600 Hours @$12 per Hour ) for Job 42 $               9,600.00 $     7,200.00 Factory Overhead(600 Hours @$14 per Hour ) for Job 40 and (600 Hours @$14 per Hour ) for Job 42 $               8,400.00 $     8,400.00 Total Cost $             20,400.00 $   28,200.00 Units Produced $                   200.00 $     2,000.00 Cost per Unit=($20400/200) for Job 40 and ($28200/2000) for Job 42 $                   102.00 $           2,169 Balance on Job cost sheet Job 40 $             20,400.00 Job 42 $             28,200.00 Cost per unit of Job 40 and 42 Job 40 $                   102.00 Job 42 $                     2,169