EB12.

LO 4.7A company has the following transactions during the week.

Purchase of $3,000 raw materials inventory

Assignment of $700 of raw materials inventory to Job 7

Payroll for 10 hours and $3,000 is assigned to Job 7

Factory depreciation of $1,750

Overhead applied at the rate of $200 per hour

What is the cost assigned to Job 7 at the end of the week?

Question

Business

Akira Duncan

4 July, 00:34

EB12.

LO 4.7A company has the following transactions during the week.

Purchase of $3,000 raw materials inventory

Assignment of $700 of raw materials inventory to Job 7

Payroll for 10 hours and $3,000 is assigned to Job 7

Factory depreciation of $1,750

Overhead applied at the rate of $200 per hour

What is the cost assigned to Job 7 at the end of the week?

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Answers (1)

Know the Answer?

Triston Wiley · Answer 1

The cost assigned to Job 7 at the end of the week is 5,700 dollars.

Explanation:

In job order costing the cost that is to be assign to a specific order is sum of actual direct material cost and actual labour cost require to perform that job. Factory overheads are also added to the job cost on the basis of allocation method (on basis of budgeted applied OH rate).

So Following costs will be assign to Job 7.

RAW materail = $ 700

Labor Cost = $ 3000

Overhead = $ 2000 (10 * 20)

Total Cost = $ 5700