Reference no: EM132513548
Alaska Launch, a private-sector aerospace company, provided the following aggregated data for satellite construction jobs during a recent period:
Direct materials $13,442,769
Direct labor 21,889,554
Applied (and actual) factory overhead 8,223,454
Beginning work in process 14,550,098
Ending work in process 17,559,000
- Satellites are usually constructed to specific customer specifications, and the contract selling price is 125% of cost.
Question 1: Assuming that the above costs are attributable to several different satellites in various stages of production, how would the cost of direct materials, direct labor, and overhead be tracked to specific jobs? How important is the job costing system in establishing a fair selling price for each satellite?
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