Sime Smith manufacturers' food production line is expected to operate for 20,000 machine hours, incur 320,000 as manufacturing overhead costs and incur a direct labour cost of 250,000 during the year at a rate of 10 per direct 

labour hour. The company allocates manufacturing overhead based on machine hours. During January, Sime Smith completed "Job 102" and 1,000 units of goods were produced. This job used 80 direct labour hours, 100 machine hours, and 9500 of raw materials. The company wishes to make a mark-up of 30% over the manufacturing cost.

 

1. Calculate the manufacturing cost of Job 102.
2. Determine the selling price for each unit

Padlow Plastics manufactures custom furniture and signage from recycled plastics. Many of the company's customers are big firms that are required by law to purchase goods that meet certain recycled guidelines. As a result, 

Padlow includes two types of direct material charges in its job cost for each job: 1) virgin materials (non-recycled), and 2) Recycled content materials. Padlow keeps track of the pounds of each type of direct material used so that the final recycled content percentage can be reported back to their customers.

 

Padlow Plastics use a predetermined manufacturing overhead rate of 6 per direct labour hour. They have provided extra information for a recent job for Jefferson County below:

Description	Quantity	Cost
Virgin Materials	120 Pounds	3.70 per pound
Recycled Content Materials	280 pounds	2.60 per pound
Direct Labour	16 hours	12.00 per hour

1. Calculate the total cost of the Jefferson County Job.
2. Calculate the percentage of recycled content used in the Jefferson County Job (using pounds). Jefferson County has a policy of purchasing products that have at least 60% recycled content. Does this job meet that requirement?

Sharp uses job order costing, and the following information was available at the end of the month:

Job B2:

Required direct materials amounted to 90,000

200 hours of direct labour used costing 8 per hour

Job B8

Required direct materials amounted to 80,000

50 hours of direct labour used costing 8 per hour

Sharp has a policy of allocating manufacturing overhead at the basis of 150% of direct labour cost for both jobs. Job B2 was completed and produced 235 units of goods. Job B8 is not yet complete.

1. Calculate the total manufacturing cot per unit for Job B2. Determine the selling price per unit if the company applies a mark-up of 40%?
2. Calculate the work in process inventory for Job B8.