Question

A job cost sheet of Sandoval Company is given below. Job Cost Sheet JOB NO. 469 Quantity 2,500 ITEM White Lion Cages Date Requested 7/2 FOR Todd Company Date Completed 7/31 Date Direct Materials Direct Labor Manufacturing Overhead 7/10 700 12 900 15 600 750 22 400 500 24 1,650 27 1,525 31 500 625 Cost of completed job: Direct materials Direct labor Manufacturing overhead Total cost Unit cost Collapse question part (a) Answer the following questions. (1) What are the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job? Source Documents Direct materials Direct labor Manufacturing overhead (2) Overhead is applied on the basis of direct labor cost. What is the predetermined manufacturing overhead rate? Predetermined manufacturing overhead rate % (3) What are the total cost and the unit cost of the completed job? (Round unit cost to 2 decimal places, e.g. 1.25.) Total cost of the completed job $ Unit cost of the completed job $?

Answer 1

1)
	Source Documents
Direct materials	Materials requisition slips
Direct labor	Time tickets
Manufacturing overhead	Predetermined overhead rate

2)
Predetermined manufacturing overhead rate       = Manufacturing overhead / Direct labor	750 / 600	125%

3)
Direct materials ( $ 700 + $ 900 + $ 1,650 + $ 1,525 )	$ 4,775
Direct labor ( $ 600 + $ 400 + $ 500 )	$ 1,500
Manufacturing overhead ( $ 1,500 x 125% )	$ 1,875
Total Cost of the completed job	$ 8,150
Unit cost of the completed job ( $ 8,150 / 2,500 )	$ 3.26