Question 2

The following information is available for Job Yaten which is being produced as per the customer request:

Production Assembly Finishing

Materials consumed $4 000 $1 000 $1 500

Direct labor wage rate per hour $6 $8 $5

Direct Labor hours 300 200 400

In accordance with the company policy the following are chargeable to jobs:

Fixed production overheads $5 per labour hour

Fixed administration overheads 80% of total production cost

Profit 20% markup on cost

Required:

1. Calculate the total cost and selling price for Job Yaten [8 marks]
2. Diana King uses joint process for its production to produce two products DK and FH. During the period, it was determined there was no work in progress inventory. The following information has been provided.

Product	Sales	Opening inventory of finished goods	Closing inventory of finished goods
DK	3,000	50	150
FH	2,000	200	100

The Joint production costs for the period were $55,000 and these are to be apportioned to the joint products based on the number of units produced.

Required:

Determine the joint production costs apportioned to products DK and FH for the period. [4 mark]