Job costing

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May 23, 2020 at 3:24 pm #571666
Motigoe
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A firm makes special assemblies to customers’ orders and uses job costing. The data for a period is:

Job number
AA10

Opening WIP $26 800
Material added in period $ 17 275
Labour $ 14 500

Job number
BB15

Opening work in progress $ 42 790
Material added in period $ 0
Labour $ 3 500

Job number
CC20

Opening work in progress $ 0
Material added in period $ 18 500
Labour $ 24 600

The budgeted overheads for the period were $126 000.

1. What overheads should be added to job number CC20 for the period?

2. Job number BB15 was completed and delivered during the period and the firm wishes to earn 33
1/3 profit on sales. What is the selling price of job number BB15?

3. If job AA10 and CC20 are not completed ,what was the approximate value of closing work in progress at the end of the period?
May 24, 2020 at 9:46 am #571726
Ken Garrett
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Typically, overheads are absorbed on the basis of an absorption rate = budgeted overheads/budgeted labour.

Budgeted labour has not been supplied, just actual labour.

I’m not sure anyone will spend time to derive the answer to a whole question for you.
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