Order ready-to-submit essays. No Plagiarism Guarantee!
Note: All our papers are written from scratch by human writers to ensure authenticity and originality.
Job Costs in a Service Company
On June 1, two jobs were in process at Top Notch Painters, Inc. Details of the jobs follow:
Job No. Direct Material Direct Labor
P-20 $174 $64
P-43 32 84
Check your essay before you submit. See exactly what your professor sees.
See your AI and plagiarism results before your instructor does.Get the exact same report your professor uses. Trusted by 50,000+ students worldwide.
Material inventory (for example, paint and sandpaper) on June 1 totaled $920, and $116 in material was purchased during the month. Indirect material of $16 was withdrawn from material inventory. On June 1, finished-goods inventory consisted of two jobs: P-12, costing $392, and P-26, costing $158. Both jobs were transferred to Cost of Goods Sold during the month.
Also during June, jobs P-20 and P-43 were completed. To complete job P-20 required an additional $68 in direct labor. The completion costs for job P-43 included $108 in direct material and $200 in direct labor. Job P-45 was started during the period but was not finished. A total of $314 of direct material was used (excluding the $16 indirect material) during the period, and total direct-labor costs during the month amounted to $408. Manufacturing overhead has been estimated at 150 percent of direct-labor costs, and this relationship has been the same for the past few years.
Required
Compute the costs of jobs P-20 and P-43 and the balances in the June 30 inventory accounts.
Job costs are collected in the three types of inventory accounts: material, work-in-process, and finished goods inventory.Compute the balance in each of the three accounts for Jobs P-20 and P-43. Compute the 6/1 balance in each account, post June events, and calculate the 6/30 ending balances.
© BrainMass Inc. brainmass.com March 21, 2019, 2:04 pm ad1c9bdddf
https://brainmass.com/business/business-management/job-costs-in-a-service-company-113226
Solution Preview
Job Costs in a Service Company
On June 1, two jobs were in process at Top Notch Painters, Inc. Details of the jobs follow:
Job No. Direct Material Direct Labor
P-20 $174 $64
P-43 32 84
Material inventory (for example, paint and sandpaper) on June 1 totaled $920, and $116 in material was purchased during the month. Indirect material of $16 was withdrawn from material inventory. On June 1, finished-goods inventory consisted of two jobs: P-12, costing $392, and P-26, costing $158. Both jobs were transferred to Cost of Goods Sold during the month.
Also during June, jobs P-20 and P-43 were completed. To complete …
