RC Corp Uses a Job Order Cost Accounting System

question 32

Essay

RC Corp. uses a job order cost accounting system. During the month of April, the following events occurred:
(a) Purchased raw materials on credit, $32,000.
(b) Raw materials requisitioned: $25,800 as direct materials (Job 1:$4,200, Job 2: $7,500, Job 3: $3,600 and Job 4: $10,500) and $10,500 indirect materials.
(c) Paid factory payroll for the month totaling $37,700 which includes $8,200 indirect labor.
(d) Assigned the factory payroll to jobs and overhead. (Job 1:$7,000, Job 2: $9,800, Job 3: $3,000 and Job 4: $9,700)
(e) Overhead was assigned at a rate of 50% of direct labor cost.
Determine the total cost of each job.

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Definitions:

Interest Rate

The cost of borrowing money or the return for lending money, typically expressed as a percentage.

Budget

An estimation of revenue and expenses over a specified future period of time, often used as a plan for management of money.

Convex Set

In mathematics, a set where, for every pair of points within the set, every point on the line segment between them is also within the set.

Interest Rate

The cost of borrowing funds, typically expressed as a percentage of the total amount loaned, which accrues over time.