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job costing

This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.

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July 13, 2016 at 7:57 pm #325812
adarsh1997
Participant
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Job AA10:
Opening wip $26,800
Materials added $17,275
Labour for period $14,500
Job BB15
Opening wip $42,790
Materials added 0
Labour for period 3,500
Job CC20
Opening wip $0
Materials added $18,500
Labour for period $24,500
The budgeted overheads for the period were $126,000.
Job BB15 were completed on the last day of the period.
1.What overhead should be added to job number CC20 for the period?
Answer: $72761
2. What approximate value of closing work in progress at end of the period?
Answer:$217,323
July 14, 2016 at 8:59 am #325836
John Moffat
Keymaster
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The only sensible way to absorb the overheads is on the basis of the labour costs.
I assume that you have found these questions in the BPP Revision Kit, in which case I am not clear what you want me to do since the Kit shows the workings to arrive at the answers.
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