At the end of August, Darling Company had completed Jobs 40 and 42. Job 40 is for 1,000 units, and Job 42 is for 200 units. The following data relate to these two jobs: On August 4, raw materials were requisitioned for production as follows: 700 units for Job 40 at $18 per unit and 1,200 units for Job 42 at $16 per unit. During August, Darling Company accumulated 500 hours of direct labor costs on Job 40 and 600 hours on Job 42. The total direct labor was incurred at a rate of $14 per direct labor hour for Job 40 and $10 per direct labor hour for Job 42. The predetermined factory overhead rate is $10.00 per direct labor hour. a. Determine the balance on the job cost sheets for Jobs 40 and 42 at the end of August. Job 40 $fill in the blank 1 Job 42 $fill in the blank 2 b. Determine the cost per unit for Jobs 40 and 42 at the end of August. If required, round your answers to the nearest cent.

Darling Company

                                                          Job 40        Job 42

a. Balance on the job cost sheets $24,600     $31,200

b. Cost per unit                                $24.60     $156.00

Explanation:

a) Data and Calculations:

                                              Job 40        Job 42

Units completed                     1,000            200

Raw materials requisitioned    700          1,200

Cost of raw materials per unit $18             $16

Direct labor hours used          500            600

Direct labor rates                     $14              $10

Predetermined overhead rate = $10 per direct labor hour

Cost of production:

Direct materials                $12,600     $19,200

Direct labor                          7,000         6,000

Overhead                            5,000         6,000

Total production costs   $24,600     $31,200

Units completed                  1,000           200

Cost per unit                    $24.60     $156.00

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