#2----Jagjit Company designs and builds retaining walls for individual customers. On August 1, there were two jobs in process: Job 93 with a beginning balance of $8,800, and Job 94 with a beginning balance of $7,220. Jagjit applies overhead at the rate of $6 per direct labor hour. Direct labor wages average $20 per hour. Data on August costs for all jobs are as follows:

	Job 93	Job 94	Job 95	Job 96
Direct materials	$920	$4,530	$3,380	$1,350
Direct labor cost	2,000	6,400	3,000	800

During August, Jobs 95 and 96 were started. Job 93 was completed on August 17, and the client was billed at cost plus 40%. All other jobs remained in process.

1. Calculate the number of direct labor hours that were worked on each job in August.

Job 93	DLH
Job 94	DLH
Job 95	DLH
Job 96	DLH

2. Calculate the overhead applied to each job during the month of August.

Job 93
Job 94
Job 95
Job 96

3. Prepare job-order cost sheets for each job as of the end of August. Refer to Amount Descriptions for the exact wording of text items within your job-order cost sheets. All amount cells must have an entry; enter zeros as needed.

Jagjit Company

Job-Order Cost Sheets

August 31

1		Job 93	Job 94	Job 95	Job 96
2	Beginning balance
3
4
5
6

4. Calculate the balance in Work in Process on August 31.

The work in process balance on August 31 is .

5. What is the price of Job 93?

The price of Job 93 is .

Partway through the year, Jagjit bought a bulldozer to handle larger jobs. The bulldozer cost $37,500 and is needed for larger commercial jobs. Smaller residential jobs can still be done with the smaller bobcat tractor.

6. CONCEPTUAL CONNECTION: Complete the statement below that outlines how the bulldozers cost could be applied to only those jobs that need the larger equipment.

Create a separate for the acquisition and use of the bulldozer. Treat the bulldozers depreciation, fuel, maintenance, etc. as . Divide this by the anticipated annual hours of use to arrive at the .