Job order costing

Professor: Manel
Guerris Larruy 8-1
Exercise 1

8-2
Exercise 1

•Job order cost procedure: (e), (f), (g), (i), (j), (k), (p), (q), (r)
•Process costing procedure: (a), (b), (c), (d), (h), (l), (m), (n), (o), (s), (t)

8-3
Exercise 2
Forge Machine Works collects its cost data by the job order cost accumulation
procedure. For Job 642, the following data are available:
Direct materials Direct labor
9/14 Issued $ 1,200 Week of Sep. 20 180 hrs @ $6.20/hr
9/20 Issued 662 Week of Sep. 26 140 hrs @ $7.30/hr
9/22 Issued 480
Factory overhead applied at the rate of $3.50 per direct labor hour.

Required:

The sales price of the job, assuming that it was contracted with a markup of 40%
of cost

8-4
 Exercise 2
Direct materials Direct labor Applied factory overhead

Date Issued Amount Date (Week of) Hours Rate Cost Date (Week of) Hours Rate Cost

9/14 $1,200 9/20 180 $6.20 $1,116 9/20 180 $3.50 $630

9/20 662 9/26 140 7.30 1,022 9/26 140 3.50 490

9/22 480
——– ———- ———-

$2,342 $2,138 $1,120

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8-5
Exercise 2

Direct materials $2,342

Direct labor 2,138
Applied factory overhead 1,120

Total factory cost $5,600

Markup 40% of cost 2,240
——-
$7,840
=====

8-6
Exercise 3

8-7
Exercise 3

8-8
Exercise 4

8-9
Exercise 4

8-10
Exercise 4

8-11
Exercise 5

8-12
Exercise 5

8-13
Exercise 6

8-14
Exercise 6

8-15
Exercise 6

8-16
Exercise 6

8-17
Exercise 7

8-18
Exercise 7

8-19
Exercise 7

8-20
Exercise 8

8-21
Exercise 8

8-22
Exercise 9

8-23
Exercise 9

8-24