Soal latihan:Service Costing

Job-Order Costing in
Construction Service Company
◼ SPC Construction Co., Beverly Hills, Los Angeles, designs and
builds large multiple-apartment housing units. The company
use cost-plus profit contract, and the profit factor used is 20
percent of total job cost. Costs are accumulated for three
primary activities : Building Design, Building Construction,
and Surface Preparation & Inspection. Direct materials and
contructions labor are traceable to each job. The following
are current construction overhead rates based on labor
hours :

◼ Building Design $8.00 per hour

◼ Building Construction $15.00 per hour
◼ Surface Prep & Inspection $10.00 per hour
Two large apartment complexes were in process at the end of
November, 2019. During December, the costs related to these
projects were as follows :
Busch Salter
Apartments Housing., Inc
◼ Begining Balances :
◼ Building Design $31,400.00 $47,900.00
◼ Building Construction $196,200.00 $246,100.00
◼ Surface Prep & Inspection $8,600.00 $10,540.00

Work during December :

◼ Building Design
◼ Direct materials $0.00 $1,200.00
◼ Labor : hours 10 hrs 30 hrs
dollars $200.00 $600.00

◼ Building Construction
◼ Direct materials $140,900.00 $172,300.00
◼ Labor : hours 1,540 hrs 730 hrs
dollars $24,640.00 $11,680.00

◼ Surface Prep aration & Inspection

◼ Direct materials $36,220.00 $8,450.00
◼ Labor : hours 760 hrs 80 hrs
dollars $13,680.00 $1,440.00
You are SPC’s Management Accountant, please
prepare to:

1. Create the job order cost cards for the two

construction projects!

2. The Busch Apartments project was completed by

the end of December. What will be the billing
amount for this job?

3. What is SPC Construction Co.’s December ending

Construction-in-Process account balance? Give
simple analysis in cost percentage for each item
based on your compute!