P17 JOB ORDER COSTING (JOB) LEARNING OBJECTIVES Develop a job order cost sheet for a manufacturer. Record the costs for four jobs. Prepare journal entries to record the activity. Post to T-accounts. Reconcile the results to the job order sheets. Analyze cost control on the jobs. Alter the job order cost sheet to include additional direct materials. Create a bar chart showing the cost components of a job. PROBLEM DATA Nutt Products manufactures screws and bolts made to customer specifications. During August, Nutt incurred the following manufacturing costs: direct materials, $28,019.00; direct labor, $15,276.75; and applied factory overhead, $9,854.50. The following data pertain to these costs: SUMMARY OF DIRECT MATERIAL REQUISITIONS Dept. No. Job No. Req. No. Quantity Cost per Unit 1 8961 M66r 2,675 $2.23 2 8962 M67r 1 25 18.78 1 8963 M68r 780 8.29 1 8961 M69r 280 5.72 2 8963 M70r 95 22.07 1 8964 M71r 2,945 3.24 SUMMARY OF DIRECT LABOR TIME TICKETS Dept. No. Job No. Ticket Nos. Hours Rate per Hour 1 8961 1056-1166 770 $7.25 1 8962 1167-1173 50 7.25 2 8962 2121-2130 92 8.75 1 8963 1174-1189 178 7.25 2 8963 2131-2134 44 8.75 1 8964 1190-1230 945 7.25 The overhead application rates are $4 per direct labor hour for Dept. 1 and 175% of direct labor cost for Dept. 2.