3. Prepare a Job Order Cost sheet for the following custom project: Materials $8,000 and 45 hours of
labor. Calculate the sales price based on your cost calculations. Do not use these numbers for any
other calculation.
P&S has a factory that proQuces cabinets for the RV and marine market. The company has other product lines. Materials and labor for the cabinets are determined by each job. To simplify the assignment, we will assume the following average costs The following information highlights P&S Manufacturing's cost structure for 2021. . The materials include $5,000 for materials on a per job basis. It requires 35 hours of labor on average for the cabinetry. The hourly rate is $15. The sales price will be set at a markup of 85% The company estimates that it will have 70,000 direct labor hours in total for the cabinets. It assumes 2,000 units are sold on average per year. . . A breakdown of estimated yearly costs related to the cabinetry follows: Salaries- Sales force Salaries for factory laborers Office Rent Factory Rent Office utilities and Misc office expenses(based on units sold) Sales travel(based on units sold) Insurance - office Depreciation - office equipment Depreciation for factory equipment Advertising Sales commissions(based on units sold) Factory Property taxes Maintenance for factory equipment S 594.000 $ 390,500 $ 159,500 $ 35,200 $ 17,600 $ 25.300 $ 15.400 S 45.100 $ 79,200 S 38,500 $ 59.400 $ 28,600 $ 93,500 Hint: you will need to distinguish between product vs. period costs and variable vs fixed costs. Please do not forget all costs for this company(not just the ones listed above in the table) P&S has a factory that proQuces cabinets for the RV and marine market. The company has other product lines. Materials and labor for the cabinets are determined by each job. To simplify the assignment, we will assume the following average costs The following information highlights P&S Manufacturing's cost structure for 2021. . The materials include $5,000 for materials on a per job basis. It requires 35 hours of labor on average for the cabinetry. The hourly rate is $15. The sales price will be set at a markup of 85% The company estimates that it will have 70,000 direct labor hours in total for the cabinets. It assumes 2,000 units are sold on average per year. . . A breakdown of estimated yearly costs related to the cabinetry follows: Salaries- Sales force Salaries for factory laborers Office Rent Factory Rent Office utilities and Misc office expenses(based on units sold) Sales travel(based on units sold) Insurance - office Depreciation - office equipment Depreciation for factory equipment Advertising Sales commissions(based on units sold) Factory Property taxes Maintenance for factory equipment S 594.000 $ 390,500 $ 159,500 $ 35,200 $ 17,600 $ 25.300 $ 15.400 S 45.100 $ 79,200 S 38,500 $ 59.400 $ 28,600 $ 93,500 Hint: you will need to distinguish between product vs. period costs and variable vs fixed costs. Please do not forget all costs for this company(not just the ones listed above in the table)
