A job cost sheet of Sandoval Company is given below.

Job Cost Sheet
JOB NO. 469 Quantity 2,500
ITEM White Lion Cages Date Requested 7/2
FOR Todd Company Date Completed 7/31
Date Direct Materials Direct Labor Manufacturing Overhead
7/10 800
12 900
15 400 500
22 300 375
24 1,600
27 1,575
31 600 750

Cost of completed job:
Direct materials
Direct labor
Manufacturing overhead
Total cost
Unit cost

Required:
1. What are the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job?
2. What is the predetermined manufacturing overhead rate? (Round answer to 0 decimal places)
3. What are the total cost and the unit cost of the completed job? (Round unit cost to 2 decimal places)
4. Prepare the entry to record the completion of the job.

1. The source documents for each of the following is as follows:

2. The predetermined manufacturing overhead rate is 125% of the direct labor cost.

Computation:

3. The total cost of the completed job is $7,800, while the unit cost is $3.12.

Computation:

The total cost of the completed job is shown in the image attached below.

The unit cost is computed as follows:

4. The journal entry to record the completion of the job is attached in the image below:

To know more about job costing, refer to the link:

link

Answer and  Explanation:

As per the data given in the question,  the calculation and journal entry is given below:

1)

Source documents for direct material is Material requisition slip, For direct labor is time tickets and for manufacturing overhead cost is predetermined overhead rate.

2)

Predetermined manufacturing overhead rate = 500 ÷ 400

= 1.25

= 125%

Hence, Predetermined overhead rate is 125% of labor cost.

3)

Total cost :

Direct material $4875        ($800 + $900 + $1600 + $1575)

Direct labor $1,300 ($400 + $300 + $600)

Manufacturing overhead $1,625 ($500 + $375 + $750)

Total cost $7,800 ($4875 + $1300 + $1625)

Now

Unit cost = Total cost ÷ Quantity

=$7,800 ÷ 2,500

= $3.12

4)  The journal entry is

Finished goods inventory A/c Dr. $7,800

           To Work in process inventory Cr. $7,800

(Being the completion of the job is recorded)

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