1. APPLY THE CONCEPTS: Complete the job cost sheets for In the Doghouse Company

   In the Doghouse Company builds doghouses. They have three sizes: small, medium and large. Each size can be built in one of two styles, standard or deluxe. All doghouses are built with treated lumber and have shingled roofs. The deluxe model is insulated and has a covered porch. In the Doghouse sells mostly to local hardware and garden stores.

   The costs for direct materials and direct labor for each type of doghouse are shown in the table below. The direct materials cost includes costs for lumber, shingles, stain or paint, and insulation. Nails and glue are also used in the construction and are considered indirect materials which make them part of overhead. The company employs two carpenters and a part-time student to maintain the equipment and clean the shop. The carpenters' wages are direct labor. The student's wages are indirect labor and, therefore, part of overhead. Other overhead costs include depreciation of equipment and the building, insurance, utilities, and taxes. Overhead is applied at 10% of direct labor cost. In the Doghouse summarizes costs by direct materials, direct labor, and overhead on its job cost sheets.

   	Direct Materials	Direct Labor
   Standard:
   Small	$64	$60
   Medium	111	90
   Large	135	150
   Deluxe:
   Small	$78	$120
   Medium	152	180
   Large	256	240

   At the beginning of April, the company has one job, job number 304, in progress from the previous month. This job is for an order of 20 small, deluxe doghouses. As of April 1, $312.00 of direct materials have been used, $480.00 of direct labor have been charged to the job and $48.00 of overhead was applied to the job. Click on the link below to get more detail on job number 304.

   During April, In the Doghouse received an order for 12 large, standard doghouses. This is job number 401 and was completed by the end of the month.

   Another order was received during the month, job 402, for 16 medium, deluxe doghouses. At the end of April, job 402 was still in process. $1,459.2 of direct materials has been used, $1,728 of direct labor has been charged to the job, and overhead was applied to job 402 using the predetermined overhead rate of 10% of direct labor cost.

   Complete the following job cost sheets for the month of April In the Doghouse and answer the following questions.

   Job 304
   20 small, deluxe doghouses
   Direct materials		$
   Direct labor
   Overhead
   	Total job cost	$

   Job 401
   12 large, standard doghouses
   Direct materials		$
   Direct labor
   Overhead
   	Total job cost	$

   Job 402
   16 medium, deluxe doghouses
   Direct materials		$
   Direct labor
   Overhead
   	Total job cost	$

   What is the balance in Work in Process on April 1? $

   What is the balance in Work in Process on April 30? $

   Think outside the box:

   What element would most likely be missing from a job cost sheet for a service organization?

   + Job number 304

   Job number 304: The following job cost sheet was prepared at the end of the previous month and shows the direct materials, direct labor, and overhead costs as of the end of the month. When the job is completed in April, the amounts should show the totals for direct materials, direct labor, and overhead.

   Job 304
   20 small, deluxe doghouses
   Direct materials		$312
   Direct labor		480
   Overhead		48
   	Total job cost	$840