A Job Cost Sheet of Fugate Company Is Given Below

question 174

Essay

A job cost sheet of Fugate Company is given below. Instructions
(a) Answer the following questions.
(1) What is the predetermined manufacturing overhead rate?
(2) What are the total cost and the unit cost of the completed job?
(b) Prepare the entry to record the completion of the job.

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Definitions:

Non-Current Assets

Long-term assets that are not expected to be converted into cash within one year of the balance sheet date, including property, plant, equipment, and intangible assets.

Gain on Sale

The financial profit realized when the selling price of an asset exceeds its book value or costs at the time of sale.

AASB 107/IAS 7

Accounting standards that set out the requirements for entities to present statements of cash flows, classifying cash flows during the period from operating, investing, and financing activities.

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, categorizing cash activities into operating, investing, and financing activities.