Job Order Cost

JobOrder Cost Problem

(This project is worth 5% of your grade.)

Directions:

After reading the scenario, complete the task below the scenario.

Scenario:

Just4U Company uses a job order cost system. The following data summarize the operations related to production for the month of January 20xx.

a) Materials purchased on account: $150,000

b) Materials requisitioned and Factory labor used:

JOB ORDER

MATERIALS

LABOR

601

$32,400

$19,300

602

$21,300

$15,200

603

$28,400

$17,500

604

$26,308

$16,395

605

$31,225

$18,422

General Factory Use

$5,300

$32,400

c) Factory overhead costs incurred on account: $34,500

d) Depreciation of machinery and equipment: $5,100

e) The factory overhead rate is $50 per machine hour.

Job Order

Machine Hours Used

601

320

602

225

603

300

604

285

605

312

f) Jobs completed: #601, #603, #605

g) Jobs shipped and billed: #601: $113,200, #605: $88,350

Task:

Prepare the proper t-accounts and show all balances and DETERMINE GROSS PROFIT.