Maurice Tutor

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Category > Accounting Posted 11 Aug 2017 My Price 13.00

Haslett Corporation

Haslett Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,900 units of Product B was received. The standard cost of one unit of Product B is as follows.

Direct materials   2 pounds at $1.00 per pound   $ 2.00
Direct labor   2.00 hour at $8 per hour   16.00
Overhead   2 hours (variable $4.50 per machine hour; fixed $2.50 per machine hour)   14.00
Standard cost per unit       $32.00

Normal capacity for the month was 4,100 machine hours. During January, the following transactions applicable to Job No. 12 occurred.

1.   Purchased 4,256 pounds of raw materials on account at $1.05 per pound.
2.   Requisitioned 4,256 pounds of raw materials for Job No. 12.
3.   Incurred 3,895 hours of direct labor at a rate of $7.91 per hour.
4.   Worked 3,895 hours of direct labor on Job No. 12.
5.   Incurred manufacturing overhead on account $33,120.
6.   Applied overhead to Job No. 12 on basis of standard machine hours allowed.
7.   Completed Job No. 12.
8.   Billed customer for Job No. 12 at a selling price of $150,100.

 

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Maurice Tutor
(5)
Status NEW Posted 11 Aug 2017 09:08 PM My Price 13.00

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