23-6A (Part Level Submission)

Jorgensen Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for1,000units of Product B was received. The standard cost of one unit of Product B is as follows.

Direct materials3pounds at $1.30per pound$3.90Direct labor1.80hour at $10.00per hour18.00Overhead2hours (variable $4.40per machine hour; fixed $3.40per machine hour)15.60Standard cost per unit$37.50

Normal capacity for the month was4,020machine hours. During January, the following transactions applicable to Job No. 12 occurred.

1.Purchased3,400pounds of raw materials on account at $1.38per pound.2.Requisitioned3,400pounds of raw materials for Job No. 12.3.Incurred1,860hours of direct labor at a rate of $9.95per hour.4.Worked1,860hours of direct labor on Job No. 12.5.Incurred manufacturing overhead on account $16,850.6.Applied overhead to Job No. 12 on basis of standard machine hours allowed.7.Completed Job No. 12.8.Billed customer for Job No. 12 at a selling price of $85,000.