PART $5$

Job Order Costing

To keep records of the actual cost of a special order job, a Job Order Cost System has been developed. Overhead is applied at the rate of $50\%$ of the direct labor cost.

Job Order Costing Section

On January $1,20$x$2,$ Division S began Job $2407$ for the Client, THE BIG CHILDREN STORE. The job called for $4,000$ customized lamps. The following set of transactions occurred from January $5$ until the job was completed:

$5-$Jan Purchased $4,000$ Lamp Kits @ $$16\mathrm{.}45$ per kit.

$9-$Jan $4,100$ sets of Lamp Kits were requisitioned, including all those in the Beginning Inventory.

$17-$Jan Payroll of $610$ Direct Labor Hours @ $$9\mathrm{.}75$ per hour.

$30-$Jan Payroll of $660$ Direct Labor Hours @ $$10\mathrm{.}00$ per hour.

$30-$Jan $3,990$ lamps were completed and shipped. All materials requisitioned were used or scrapped, and are a cost of normal processing.

Month End Overhead Information

Actual Variable Manufacturing Overhead

$$1,498\mathrm{.}60$

Actual Fixed Manufacturing Overhead

$$40,623\mathrm{.}45$

Round to two

places, $###

Cost of Direct Material Incurred in Manufacturing Job $2407$

Cost of Direct Labor Incurred in Manufacturing Job $2407$

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$\{13\mathrm{.}01\}$

$\{13\mathrm{.}02\}$

Cost of Manufacturing Overhead Applied to Job $2407$

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$\{13\mathrm{.}03\}$

Cost of manufacturing one lamp

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