Analysis

 

After reading the scenario, complete the task below the scenario.

 

Scenario:

 

Just4U Company uses a job order cost system.  The following data summarize the operations related to production for the month of January 20xx.

 

a) Materials purchased on account:$150,000

b) Materials requisitioned and Factory labor used:

 

                                JOB ORDERMATERIALSLABOR

                                         601            $32,400$19,300

                                         602            $21,300$15,200

                                         603            $28,400$17,500

                                         604            $26,308$16,395

                                         605            $31,225$18,422

                      General Factory Use    $5,300        $32,400

 

c) Factory overhead costs incurred on account:  $34,500

d) Depreciation of machinery and equipment:  $5,100

e) The factory overhead rate is $50 per machine hour.

 

Job OrderMachine Hours Used

     601                  320

     602                  225

     603                  300

     604                  285

     605                  312

 

f) Jobs completed:#601, #603, #605

g) Jobs shipped and billed:  #601: $113,200,   #605: $88,350 

 

Task: 

Prepare the proper t-accounts and show all balances and DETERMINE GROSS PROFIT.