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Waddell Equipment Company uses a job order cost system. The following data summarize the operations related to production for April 20Y4, the first month of operations:
a. Materials purchased on account, $36,000.
b. Materials requisitioned and factory labor used:
Waddell Equipment Company uses a job order cost system. The
c. Factory overhead costs incurred on account, $6,000.
d. Depreciation of machinery and equipment, $1,550.
e. The factory overhead rate is $40 per machine hour. Machine hours used:
Job ___________Machine Hours
No. 401 .......................... 38
No. 402 .......................... 30
No. 403 .......................... 18
No. 404 .......................... 56
No. 405 .......................... 24
No. 406 .......................... 14
Total ............................ 180
f. Jobs completed: 401, 402, 403, and 405.
g. Jobs were shipped and customers were billed as follows: Job 401 $22,750, Job 402 $16,600, Job 403 $8,400.
Instructions
1. Prepare a schedule summarizing manufacturing costs by job for April. Use the following form:
Waddell Equipment Company uses a job order cost system. The
2. Prepare a schedule of jobs finished in April.
3. Prepare a schedule of jobs sold in April. What account does this schedule support for the month of April?
4. Prepare a schedule of completed jobs on hand as of April 30, 20Y4. What account does this schedule support?
5. Prepare a schedule of unfinished jobs as of April 30, 20Y4. What account does this schedule support?
6. Determine the gross profit for April based upon the jobs sold. Ignore the difference between actual and applied factory overhead.
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