A Problem 2 Job Costing B C D E F G H Zia Inc. is a manufacturer that uses a job order cost system. The following data summarize the operations related to production for February, the first month of operations: Requisitioned materials for production are as follows: 500 sq. ft. for Job 201 at $10 per sq.ft. B400 sq.ft. for Job 202 at $15 per sq.ft. 3 1 Accumulated direct labor costs as follows: 700 hours of direct labor on Job 201 at $15 per hour 2 500 hours of direct labor on Job 202 at $17 per hour 3 4 15 16 17 Zia estimates that total factory overhead costs will be $500,000 for the year. Direct labour hours are estimated to be 50,000 which is used as the overhad allocation base. The company had two completed jobs at the end of January: Jobs 201 and Job 202 Data on the accumulated direct labor hours and units produced for these jobs are as follows: 18 19 20 Direct labor hours Units produced 21 Job 201 700 800 500 500 22 Job 202 23 24 Required: 25 A. 26 27 28 29 30 31 B 32 Using the information provided, determine i) The pre-determined factory overhead rate: The amount of factory overhead applied to: Job 201: Job 202 Prepare the Job Cost Sheets for Job 201 and 202. Calculate the unit costs for Job 201 and 202 Cost components Job 201 $ Job 202 S Unit cost Prepare the journal entries for the total requisition of direct materials and the assignment of direct labor and the allocation of factory overhead during January. Wages are not yet paid. 33 34 35 DM 36 DL 37 Applied FOH 38 Total cost 39 40 41 C 42 43 44 Accounts 45 46 47 48 48 50 51 52 53 54 Debit Total requisition of Direct materials Assignment of direct labor Allocation of MOH Credit 55 D. Journalize the completion of the Job 201 and 202. 56 57 Accounts Debit Credit 58 59 60 Completion of Job 201 and 202 61 62 E Journalize the sale of Job 201 at a selling price of $70 per unit for cash 63 64 Accounts Debit Credit 65 66 67 Recording sales 68 69 70 71 Delivery of Job 201 to customer 72 73 74 75 76 77 78 79 80 81