Direct materials		2 pounds at $1.00 per pound		2
Direct labor		2.00 hour at $10 per hour		20
Overhead		2 hours (variable $4.50 per machine hour; fixed $3.00 per machine hour)		15
Standard cost per unit				$37.00
Normal capacity for the month was 4,000 machine hours. During January, the following transactions applicable to Job No. 12 occurred.
Purchased 3,195 pounds of raw materials on account at $1.06 per pound.				3195	1.06
Requisitioned 3,195 pounds of raw materials for Job No. 12.				3195
Incurred 3,105 hours of direct labor at a rate of $9.93 per hour.				3105	9.93
Worked 3,105 hours of direct labor on Job No. 12.					3105
Incurred manufacturing overhead on account $24,670.					24670
Applied overhead to Job No. 12 on basis of standard machine hours allowed.
Completed Job No. 12.
Billed customer for Job No. 12 at a selling price of $120,000.					120000

Problem 23-6A (part level submission) Jorgensen Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,500 units of Product B was received. The standard cost of one unit of Product B is as follows Direct materials Direct labor Overhead 2 pounds at $1.00 per pound 2.00 hour at $10 per hour 2 hours (variable 4.50 per machine hour; fixed $3.00 per machine hour) $ 2.00 20.00 15.00 $37.00 Standard cost per unit Normal capacity for the month was 4,000 machine hours. During January, the following transactions applicable to Job No. 12 occurred 1. Purchased 3,195 pounds of raw materials on account at $1.06 per pound 2. Requisitioned 3,195 pounds of raw materials for Job No. 12 3. Incurred 3,105 hours of direct labor at a rate of $9.93 per hour 4. Worked 3,105 hours of direct labor on Job No. 12 5. Incurred manufacturing overhead on account $24,670 6. Applied overhead to Job No. 12 on basis of standard machine hours allowed 7. Completed Job No. 12 8. Billed customer for Job No. 12 at a selling price of $120,000