Student: GRETCHEN P.

MONTOYA
Formative Assessment 2
MET: Job Order and Process Costing

Problem:
Compute the unit product cost that would appear on the job cost sheet for this job.
Job Order No. X1A was recently completed. The following data have been recorded
on its job
cost sheet:

Direct Materials $61,050

Direct labor-hours 1,332 labor hours
Direct labor wage rate $14 per labor hour
Machine hours 1,480 machine hours
Number of Units complete 3,700 units

The company applies manufacturing overhead on the basis of machine-hours. The

predetermined overhead rate is $13 per machine-hour.

Solution

Cost Summary
Direct Materials $61,050
Direct Labor (1332 x $14) 18,648
Factory Overhead (1480 x $13) 19,240
Total Job Cost 98,938
Total Jobs Completed 3,700
Unit Product Cost ($98,398/3700) $26.74

Mini-Case

1.
Cost transferred in $25,000
Units 10,000
Cost per unit 2.50

Cost this dept. 18,000

Units 9,000
Cost per unit 2.00

Adjustment for lost units 0.28

=(1,000 * 2.5)/9,000

Cost per unit (kg) $4.78

Total Cost of Production 43,000

Total Units in pack 90,000
Cost per pack (100g) $0.48