Solution-Smithson company uses a job-order costing system

Smithson company uses a job-order costing system

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Reference no: EM13972729

Smithson Company uses a job-order costing system and has two manufacturing departments--Molding and Fabrication. The company provided the following estimates at the beginning of the year:

	Molding	Fabrication	Total


Machine-hours	$20,000	30,000	50,000
Fixed manufacturing overhead costs	800,000	$300,000	$1,100,000
Variable manufacturing overhead per machine-hour	$5.00	$5.00

During the year, the company had no beginning or ending inventories and it started, completed, and sold only two job-Job D-75 and Job C-100. It provided the following information related to the two jobs:

Job D-75:	Molding	Fabrication	Total

Direct materials cost	$375,000	$325,000	$700,000
Direct labor cost	$200,000	$160,000	$360,000
Machine-hours	15,000	5,000	20,000

Job C-100:	Molding	Fabrication	Total

Direct materials cost	$300,000	$250,000	$550,000
Direct labor cost	$175,000	$225,000	$400,000
Machine-hours	5,000	25,000	30,000

Smithson had no overapplied or underapplied manufacturing overhead during the year.

Reference no: EM13972729

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Smithson company uses a job-order costing system

Reference no: EM13972729

Reference no: EM13972729

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