Hi. Could someone please explain these questions on job costing with workings and explainations. Thank you.
1 Beck Ltd uses job cost system. During March, the firm worked on the orders. A B and C. The budget for March anticipated that the firm would use 400 direct labour hours and that total factory overhead would be $2,000. During March, the fim used $4,000 of materials for Job A $6,000 for Job B, and $9.000 for Job C. Labour is paid $8 per hour. The fim used 125 direct labour hours for Job A 210 for Job B, and 80 for Job C Job A was completed and sold, Job B was completed and is in finished goods inventory and Job C is not yet complete. Overhead is applied to jobs on the basis of direct labour hotirs Actual overhead for March was $2,050, Required: (a) Prepare the Job Cost Card for the company (6) Determine the amount of over- or under-applied overhead for March, 2. Moreox Ltd custom-makes products to the specifications of customers. The following information relates to a job, Job-ML321, taken up and completed in January 2011 (1) There are 200 units in Job-ML321, and the various unit production costs are as follows: Direct material $270 Direct labour $150 Factory overhead $120 (2) During the month 15 units were rejected as spoiled and sold for $75 each Only 10 units were expected to be spoiled. All 15 units were immediately replaced (3) During the production process, 10 units were found to be defective and incurred the following unit costs for corrective work Direct material $30 Direct labour Factory overhead $12 All units were accepted as good units after the correction. Only 6 units were expected to be defective (4) Scrap and waste materials were generated by the job. The scrap matenals were sold for a total of $150 while the waste materials incurred a total cost of $45 to dispose. Only 40% of scrap and waste materials were considered as normal Required: (a) Prepare journal entries to record stems (1) to (4) above. Narrations are required. (6) Compute the total and unit costs of Job-ML321 Show all workings and round your answers to two decimal places $15