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Basic job Costing (50 points) Our company makes customized jewelry Customer 101 orders a ring (job 101). It requires 3.5 grams of 14k gold, 1
- Basic job Costing (50 points)
- Our company makes customized jewelry
- Customer 101 orders a ring (job 101). It requires 3.5 grams of 14k gold, 1 diamond and 1 rubies.
- Customer 102 orders a pendant (job 102). It requires 3 grams of 14 k gold, and 3 rubies.
- Purchasing buys 1,000 grams of 14k gold for $43,000. 10 diamonds for $32,000, and 10 rubies for $13,000.
- For the month, the company had factory labor costs of $240,000 and 10,000 hours.
USE EXCEL
- Enter the journal entry for the purchases/receivings.
- Enter the journal entry for the direct materials requisitions (by job).
- Prepare the journal entry for factory payroll.
- Enter the journal entry for direct labor. Job 101 required 6 hours of labor. Job 102 required 8 hours of labor (by job) (hint: compute the average rate).
- 40 grams of gold went to indirect materials. Prepare the journal entry
- 30 hours of labor went to indirect labor. Prepare the journal entry.
- Overhead is applied at a rate of 120% of direct materials AND direct labor COSTS. Show the journal entries. (by job)
- Show the journal entry for the completion for each job.
- Assume the company has a 20% markup. What is the price of each job?
- Show Sales, CGS and Gross Profit in income statement format for the two jobs (by job)?
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