Twinkle Ornaments Company uses job costing.Twinkle Ornaments Company has two departments,Trimming and Finishing.Manufacturing overhead is allocated based on direct labor cost in the Trimming Department and direct labor hours in the Finishing Department.The following additional information is available:

Actual data for completed Job No.650 is as follows:

If Job No.650 consists of 500 units of product,the average unit cost of this job is closest to:

Question

Twinkle Ornaments Company uses job costing.Twinkle Ornaments Company has two departments,Trimming and Finishing.Manufacturing overhead is allocated based on direct labor cost in the Trimming Department and direct labor hours in the Finishing Department.The following additional information is available:

Actual data for completed Job No.650 is as follows:

If Job No.650 consists of 500 units of product,the average unit cost of this job is closest to:

Actual data for completed Job No.650 is as follows:

If Job No.650 consists of 500 units of product,the average unit cost of this job is closest to:

Quizplus · Accepted Answer

C)$400,000 / 320,000 = 125% Trim rate
$300,000 / 40,000 = $7.50 Finishing rate
($35,400 × 125 %)+ (5,000 × $7.50)= $81,750
Direct Materials = $22,500 + 52,500 = $75,000
Direct Labor = $35,400 + 37,100 = $72,500
Then $81,750 + 75,000 + 72,500 = 229,250 /500 = $458.50

Twinkle Ornaments Company Uses Job Costing