Reference no: EM132029964

Job Order Cost Problem -

Directions: After reading the scenario, complete the task below the scenario.

Scenario: Just4U Company uses a job order cost system. The following data summarize the operations related to production for the month of January 20xx.

a) Materials purchased on account: $150,000

b) Materials requisitioned and Factory labor used:

JOB ORDER	MATERIALS	LABOR
601	$32,400	$19,300
602	$21,300	$15,200
603	$28,400	$17,500
604	$26,308	$16,395
605	$31,225	$18,422
General Factory Use	$5,300	$32,400

c) Factory overhead costs incurred on account: $34,500

d) Depreciation of machinery and equipment: $5,100

e) The factory overhead rate is $50 per machine hour.

Job Order	Machine Hours Used
601	320
602	225
603	300
604	285
605	312

f) Jobs completed: #601, #603, #605

g) Jobs shipped and billed: #601: $113,200, #605: $88,350

Task: Prepare the proper t-accounts and show all balances and DETERMINE GROSS PROFIT.