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 September, the company has one job, job number 807, in progress from the previous month. This job is for an order of 12 medium, deluxe doghouses. As of September 1, $729.60 of direct materials have been used, $864.00 of direct labor have been charged to the job and $86.40 of overhead was applied to the job. Click on the link below to get more detail on job number 807.

During September, In the Doghouse received an order for 16 small, standard doghouses. This is job number 901 and was completed by the end of the month.

Another order was received during the month, job 902, for 20 large, deluxe doghouses. At the end of September, job 902 was still in process. $1,024 of direct materials has been used, $960 of direct labor has been charged to the job, and overhead was applied to job 902 using the predetermined overhead rate of 10% of direct labor cost.

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

Job 807
12 medium, deluxe doghouses
Direct materials		$
Direct labor
Overhead
	Total job cost	$

Job 901
16 small, standard doghouses
Direct materials		$
Direct labor
Overhead
	Total job cost	$

Job 902
20 large, deluxe doghouses
Direct materials		$
Direct labor
Overhead
	Total job cost	$

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

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

Think outside the box:

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

• direct labor
• Direct materials
• Overhead