Question

At the end of August, Darling Company had completed Jobs 40 and 42. Job 40 is for 500 units, and Job 42 is for 200 units.

The following data relate to these two jobs:

On August 4, raw materials were requisitioned for production as follows: 300 units for Job 40 at $18 per unit and 900 units for Job 42 at $20 per unit.

During August, Darling Company accumulated 600 hours of direct labor costs on Job 40 and 1,100 hours on Job 42. The total direct labor was incurred at a rate of $12 per direct labor hour for Job 40 and $12 per direct labor hour for Job 42.

The predetermined factory overhead rate is $5.00 per direct labor hour.

a. Determine the balance on the job cost sheets for Jobs 40 and 42 at the end of August.

Job 40	$
Job 42	$

b. Determine the cost per unit for Jobs 40 and 42 at the end of August. If required, round your answers to the nearest cent.

Job 40	$
Job 42	$

Answer 1

a.	Job 40	$15,600
	Job 42	$36,700
		Job 40	Job 42
	Direct Material	$5,400	$18,000
	Direct Labor	$7,200	$13,200
	Overhead	$3,000	$5,500
	Total	$15,600	$36,700
b.	Job 40	$31.20
	Job 42	$183.50
		Job 40	Job 42
	Direct Material	$5,400	$18,000
	Direct Labor	$7,200	$13,200
	Overhead	$3,000	$5,500
	Total (a)	$15,600	$36,700
	No of units (b)	500 units	200 units
	Cost per unit (a)/(b)	$31.20	$183.50