Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Doghouse Company In the Doghouse Company builds doghouses. They have three sizes: small, medium and large. Each size can be built in one of two

image text in transcribedimage text in transcribed
Doghouse Company In the Doghouse Company builds doghouses. They have three sizes: small, medium and large. Each size can be built in one of two styles, standard or deluxe. All doghouses are built with treated lumber and have shingled roofs. The deluxe model is insulated and has a covered porch. In the Doghouse sells mostly to local hardware and garden stores. The costs for direct materials and direct labor for each type of doghouse are shown in the table below. The direct materials co " v includes costs for lumber, shingles, stain or paint, and insulation. Nails and glue are also used in the construction and are considered indirect material " v 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 direct labor. " v The student's wages are indirect labor * v and, therefore, part of overhead. Other overhead costs 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 overhead on its job cost sheets. Direct Direct Materials 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 July, the company has one job, job number 605, in progress from the previous month. This job is for an order of 20 medium, standard doghouses. As of July 1, $1,332.00 of direct materials have been used, $1,080.00 of direct labor have been charged to the job and $108.00 of overhead was applied to the job. Click on the link below to get more detail on job number 605. During July, In the Doghouse received an order for 16 large, deluxe doghouses. This is job number 701 and was completed by the end of the month. Another order was received during the month, job 702, for 12 small, standard doghouses. At the end of July, job 702 was still in process. $307.2 of direct materials has been used, $288 of direct labor has been charged to the job, and overhead was applied to job 702 using the predetermined overhead rate of 10% of direct labor cost. Complete the following job cost sheets for the month of July In the Doghouse and answer the following questions. Job 605 20 medium, standard doghouses Direct materials Direct labor Overhead Total job cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems Controls And Processes

Authors: Leslie Turner, Andrea B. Weickgenannt

1st Edition

0471479519, 9780471479512

More Books

Students also viewed these Accounting questions

Question

What community placements are available for practica?

Answered: 1 week ago