Chapter 10 Problem Set Mastery Problem: Jeb Order Corting (Advanced) Cost flows The price quoted to the customer is closely tied to the estimated cost in environments in which products are made according to the customer's specifications. Therefore, a company must be able to determine the unit cost of its products for pricing as well as for financial reporting purposes. To track costs in these environments, a border costing system is generally used. A job order casting system Must be able to identity each individual job and accumulate its costs separately from the costs of other jobs. Recall the flow of costs used to determine cost of goods manufactured and cost of goods sold. The following flowchart illustrates the How of costs into Work in Process and Finished Goods Materials Labor Overhead Job Materials, Labor OH Work in Process Materials, Labor in job order casting, the costs in Work in Process and Finished Goods can be related to see you Mater. Labor Chapter 10 Problem Set Joit. Matera, Labor, Finished Goods Job 2 Materials, Labor APPLY THE CONCEPTS: Determine the costs for Work in Process and Finished Goods Job 2 Job 3 Job 4 5221 5316 Materials Labor Job 1 1408 652 175 $250 372 165 349 90 Overhead 126 Total Complete the table and determine the following account Work in Process Finished Goods Job Cost Sheets A job cost sheet is used to accumulate the following costs for each jobs direct materials, direct labor and overhead. It is an interal document, so the format varies by company. Some companies prefer a detailed cost sheet that shows the details for direct materials (such as quantity, type, and requisition numbers for each materialused) and details for direct labor (such as hours and wage rate for each employee who worked on the job). Other companies prefer a summary showing a total for direct materials and a total for direct labor Overheadsplied reported on all job cost sheets. Recall that firms use coming to determine unit cost, Norma costing requires the use of predetermined overhead rates, which are calculated as follows: Estimated An Overhead Pretermined Overhede Estate Coster APPLY THE CONCEPTS: Complete the job cost sheets for in the Doghouse Company Chapter 10 Problem Set 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 site can be built in one of two styles, standard or deluxe. All doghouses are built with treated lumber and have shingled roots. The deluxe model is insulated and has a covered porch. In the Doghouse sells mostly to focal hardware and garden stores The costs for direct materials and Grect labor for each type of doghouse are shown in the table below. The Includes costs for lumber, shingles, stain or paint, and insulation, Nails and glue are also used in the construction and are considered 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 The student's wages are and therefore, part of overhead. Other overhead coors 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 verhead on its job cost sheets Direct Materials Direct Labor Standard: Small 564 160 Medium 111 90 Large 135 150 Deluxe Small 578 5120 Medium 152 180 Large 256 240 At the beginning of June, the company has one job, job number 06, in progress from the previous month. This job is for an order of 16 large, standard doghouse. As of June 1. 5432.00 of direct materials have been used, 5480,00 of direct labor have been charged to the job and 540.00 of overhead was applied to the job. Click on the link below to get more detail on job number 506 During June, In the Doghouse received an order for 12 medium, standard doghouses. This is jeb number 601 and was completed by the end of the month. Another order was received during the month. Job 802 for 20 smal, deluxe doghouses . At the end of June, Job 002 was still in process, 1996 of direct materials has been used $1,440 ot direct label has been charged to the job, and overhead applied to job 602 using the predetermined overhead rate of 10% of direct labor cost Complete the following job cost sheets for the month of June in the Doghouse and answer the following questions Chapter 10 Problem Set Complete the following job cost sheets for the month of June In the Doghouse and answer the following questions. Job 506 16 large, standard doghouses Direct materials Direct labor Overhead Total job cost Job 601 DIIU LODU 12 medium, standard doghouses Direct materials Direct labor Overhead Total job cost Job 602 20 small celuxe doghouses Direct materials Direct labor Overhead Total job cost What is the balance in Work in Process on June 175 What is the balance in Work in Process on June 305 Think outside the box buld IU Chapter 10 Problem Set 5 Overhead Total job cost Job 602 20 smal, deluxe doghouses Direct materials Direct labor Overhead Total job cost What is the balance in Work in Process on June 17 What is the balance in Work in Process on June 305 Think outside the box What element would most likely be mising from a job cont sheet for a urnike oranization? + ob number 506 Job number 506. The following 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 completed in Son, the amounts should show the totals for direct materials, direct later and overhead. Job 506 16 large, standard doghouses Direct materials 5432 Direct labor 480 Overhead 48 Total job cost $960