Delta Construction

Scenario: Job Cost Calculation

Data:

• Job Data:
  • Job 201: Direct Materials $30,000, Direct Labor $20,000, Factory Overhead $15,000
  • Job 202: Direct Materials $25,000, Direct Labor $18,000, Factory Overhead $12,000

Requirements:

1. Calculate the total cost for Job 201.
2. Calculate the total cost for Job 202.
3. Discuss the allocation of factory overhead costs using an appropriate allocation base.
4. Prepare a job cost sheet for Job 201 and Job 202.
5. Analyze the profitability of each job based on job order costing principles.