Quickwork Company Uses a Job Order Costing System

question 27

Essay

Quickwork Company uses a job order costing system.On March 1,Quickwork Company's Work in Process Inventory account shows a beginning balance of $170,000.Production activity for March was as follows: Materials costing $85,000,along with operating supplies of $20,000,were requisitioned into production.Quickwork Company's total payroll was $350,000,of which $75,000 was indirect labor.Overhead is applied at a rate of 125 percent of direct labor cost.Quickwork's Cost of Goods Sold for the month of May was $692,000.Finished Goods Inventory was $71,500 on March 1 and $84,000 on March 31.(Quickwork does not close out overhead accounts until year-end. )
a.Calculate Quickwork's cost of goods completed for March.
b.Calculate Quickwork's work in process ending inventory (March 31).
c.One of the jobs that was started in March,Job 208,was completed in April.Job 208 was 250 special-order decorative lamps.The following costs had been applied to Job 208 as of April 1: direct materials,$1,500;direct labor,$2,000;overhead,$2,500.In April,$580 in direct materials cost and $900 of direct labor cost were added to complete Job 208.What was the cost per unit for Job 208? (Show your computations. )

---

Definitions:

Realistic Job Previews

An informational tool used by organizations to provide potential employees with a truthful view of what a job entails, encompassing both its positive and negative aspects.

Financial Industry

A sector of the economy comprised of firms and institutions that provide financial services to commercial and retail customers, including banks, investment companies, insurers, and brokers.

Meat-Processing Plant

A facility where animals are slaughtered, and meat is processed and prepared for distribution and sale.

Educational Institutions

Organizations dedicated to the instruction and training of individuals in a wide range of fields and levels, such as schools, colleges, and universities.