Question

Sheffield Inc. uses job-order costing for its brand new line of homework machines. The cost incurred...

Sheffield Inc. uses job-order costing for its brand new line of homework machines. The cost incurred for production during 2020 totalled $6800 of materials, $2700 of direct labour costs, and $1000 of manufacturing overhead applied. The company ships all goods as soon as they are completed which results in no finished goods inventory on hand at the end of any year. Beginning work in process totalled $5600, and the ending balance is $2700. During the year, the company completed 20 machines. How much is the cost per machine?

$525

$670

$805

Not enough information is given.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #2

Total Cost incurred during the year :

Materials = $6,800

Labour = $2,700

Manufacturing Overhead applied = $1,000

Total Cost incurred during the year = $10,500

Cost apportioned to current year's production

= Beginning WIP + Total Cost incurred during the year - Ending WIP

= $5,600 + $10,500 - $2,700

= $13,400

Therefore, Cost for 20 Machines = $13,400

Therefore, Cost of 1 machine = $13,400 / 20 = $670

Ans : Cost per machine = $670

For any queries please comment

If you are satisfied with the answer please click the LIKE THUMB

answered by: anonymous
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Madison Inc. uses job order costing for its brand new line of sewing machines. The cost...
Madison Inc. uses job order costing for its brand new line of sewing machines. The cost incurred for production during 2011 totaled $18,000 of materials, $9,000 of direct labor costs, and $6,000 of manufacturing overhead applied. The company ships all goods as soon as they are completed which results in no finished goods inventory on hand at the end of any year. Beginning work in process totaled $15,000, and the ending balance is $9,000. During the year, the company completed...
7) Brand Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based...
7) Brand Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $225,700, variable manufacturing overhead of $3.00 per machine-hour, and 37,000 machine-hours. The company has provided the following data concerning Job A424 which was recently completed: Number of units in the job 20 Total machine-hours 80 Direct materials $ 910 Direct labor cost $ 1,820...
J Company has the following information for the year related to its job order costing system....
J Company has the following information for the year related to its job order costing system. Work-In Process - Beginning Inventory $ 18,000 Finished Goods - Beginning Inventory 12,000 Direct materials placed in production 80,000 Direct labor incurred 190,000 Actual manufacturing overhead incurred 300,000 Manufacturing overhead applied to production 295,000 Cost of jobs completed and transferred 500,000 The cost of J Company's ending inventory of Work in Process is:
Kenworth Company uses a job-order costing system. Only three jobs—Job 105, Job 106, and Job 107—were...
Kenworth Company uses a job-order costing system. Only three jobs—Job 105, Job 106, and Job 107—were worked on during November and December. Job 105 was completed on December 10; the other two jobs were still in production on December 31, the end of the company’s operating year. Data from the job cost sheets of the three jobs follow:    Job Cost Sheet    Job 105 Job 106 Job 107   November costs incurred:      Direct materials $ 16,500 $ 9,300 $ 0...
Kenworth Company uses a job-order costing system. Only three jobs—Job 105, Job 106, and Job 107—were...
Kenworth Company uses a job-order costing system. Only three jobs—Job 105, Job 106, and Job 107—were worked on during November and December. Job 105 was completed on December 10; the other two jobs were still in production on December 31, the end of the company’s operating year. Data from the job cost sheets of the three jobs follow:    Job Cost Sheet    Job 105 Job 106 Job 107   November costs incurred:      Direct materials $ 19,500 $ 12,300 $ 0...
New Junior Company is a manufacturing firm that uses Job-Order costing system. On January 1, the...
New Junior Company is a manufacturing firm that uses Job-Order costing system. On January 1, the beginning of the current year, the company’s inventory balances were as follows: Raw materials $13’700 Work in process 44’000 Finished goods 32’400 The company applies cost to jobs on the basis of machine hours. For the current year, the company estimated that it would work 32’500 machine hours and incur $151’000 in manufacturing overhead costs. The following transactions were recorded for the year: a....
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances...
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances were as follows: Raw materials $ 50,000 Work in process $ 30,800 Finished goods $ 43,200 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company’s predetermined overhead rate of $12.00 per direct labor-hour was based on a cost formula that estimated $480,000 of total manufacturing overhead for an estimated activity level of 40,000 direct...
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances...
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances were as follows: Raw materials $ 40,000 Work in process $ 18,000 Finished goods $ 35,000 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company’s predetermined overhead rate of $16.25 per direct labor-hour was based on a cost formula that estimated $650,000 of total manufacturing overhead for an estimated activity level of 40,000 direct...
Waldbauer Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed...
Waldbauer Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month. In October the company completed job N66B that consisted of 10,000 units of one of the company's standard products. No other jobs were in process during the month. The job cost sheet for job N66B shows the following costs: Beginning balance $ 41,000 Direct materials $251,000 Direct labor cost $ 98,000 Manufacturing...
15. Ravsten Company uses a job-order costing system. On January 1, the beginning of the current...
15. Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company’s inventory balances were as follows:      Raw materials $ 20,000   Work in process $ 11,600   Finished goods $ 30,800 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,800 machine-hours and incur $171,120 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT