Solid Oak Bureau uses job costing.Solid Oak Bureau 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

Solid Oak Bureau uses job costing.Solid Oak Bureau 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

A)$416,000 / 320,000 = 130% Trim rate
$260,000 / 40,000 = $6.50 Finishing rate
($35,400 × 130 %)+ (5,000 × $6.50)= $78,520
Direct Materials = $22,500 + 52,500 = $75,000
Direct Labor = $35,400 + 37,100 = $72,500
Then $78,520 + 75,000 + 72,500 = 226,020 /500 = $452.04

Solid Oak Bureau Uses Job Costing