Job Order Cost Problem (This project is worth 5% of your grade.) Directions: After reading the scenario, complete the task below the scenario
(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.
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