Gamma Construction

Scenario: Job Cost Calculation

Data:

• Job Data:
  • Job 101: Direct Materials $20,000, Direct Labor $15,000, Factory Overhead $10,000
  • Job 102: Direct Materials $15,000, Direct Labor $12,000, Factory Overhead $8,000

Requirements:

1. Calculate the total cost for Job 101.
2. Calculate the total cost for Job 102.
3. Discuss the allocation of factory overhead costs to each job using an appropriate allocation base.
4. Prepare a job cost sheet for Job 101 and Job 102.
5. Analyze the profitability of each job based on job order costing.