1. AbC Company is a Contracting Company that builds custom- made boats. It received from MVB an order to build 5 custom-made boats. The boats are to be delivered in 6 months with the first two to be delivered in the next two months. The following costs are incurred for the two boats to be delivered in two months:

Direct Materials $ 80,000

Direct Labor $120,000

Manufacturing Overhead is applied at 150% of Direct Labor.

Required:

1. How Much is the Total Cost to produce the two jobs? Show computation.

2. How much is the Cost for each Job completed?

III. The two Jobs are sold to MVB at 5 times of the cost. Give the journal entries to record the sale which was for Cash.