Bacani, Cateleen R.

Job Order Cost Schedule Activity

Schedule showing the cost and the amount to be charged for each job:
Job Pine-20 Job Birch-10
Direct materials $6,000 $8,000
Direct labor 9,000 15,000
Factory overhead applied 10,000 22,500
Total Costs $25,000 $45,500
Add: Allowance for profit and other costs 12,500 22,750
Amount to be charged $37,500 $68,250

Direct Material Solution:

Job Pine-20 Job Birch-10
= DM Issued – DM Returned = DM Issued – DM Returned
= $6,500 – $500 = $8,000 – 0
= $6,000 = $8,000

Direct Labor Solution:

Job Pine-20 Job Birch-10
= $9,000 = $15,000

Factory Overhead Applied:

Job Pine-20
= (Direct Labor / Direct Labor Rate) x Overhead Application Rate
= ($9,000 / $9) x $10
= $1,000 x $10
= $10,000
Job Pine-20
= (Direct Labor / Direct Labor Rate) x Overhead Application Rate
= ($15,000 / $10) x $15
Bacani, Cateleen R. Job Order Cost Schedule Activity

= $1,500 x $15
= $22,500

Allowance for Profit and Other Costs:

Job Pine-20 Job Birch-10
= Total Costs – Mark-up on Costs = Total Costs – Mark-up on Costs
= $25,000 – 50% = $45,500 – 50%
= $12,500 = $22,750