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Problem 7-57 (Algo) Job Costs in a Service Company (LO 7-4) On September 1, two jobs were in process at Pete's Patios. Details of the jobs follow: Direct Materials $1,024 695 Job Number PP-24 PP-30 Direct Labor $426 1,720 Materials Inventory on September 1 totaled $5,460, and $676 worth of materials was purchased during the month. Indirect materials of $105 were withdrawn from materials inventory. On September 1, finished goods inventory consisted of two jobs, PP-12, costing $2,440, and PP-14, with a cost of $958. Costs for both jobs were transferred to Cost of Services Billed during the month. Also during September, Jobs PP-24 and PP-30 were completed. Completing Job PP-24 required an additional $1,440 in direct labor. The completion costs for Job PP-30 included $686 in direct materials and $4,200 in direct labor. Pete's Patios used a total of $1,944 of direct materials (excluding the $105 indirect materials) during the period, and total direct labor costs during the month amounted to $8,190. Overhead has been estimated at 50 percent of direct labor costs, and this relation has been the same for the past few years. Required: Compute the costs to Jobs PP-24 and PP-30 and the balances in the September 30 inventory accounts. Cost to complete PP-24 Cost to complete PP-30 Balance of Materials Inventory as of September 30 Balance of Work-in-Process as of September 30 Balance of Finished Goods Inventory as of September 30

Problem 7-57 (Algo) Job Costs in a Service Company (LO 7-4) On September 1, two jobs were in process at Pete's Patios. Details of the jobs follow: Direct Materials $1,024 695 Job Number PP-24 PP-30 Direct Labor $426 1,720 Materials Inventory on September 1 totaled $5,460, and $676 worth of materials was purchased during the month. Indirect materials of $105 were withdrawn from materials inventory. On September 1, finished goods inventory consisted of two jobs, PP-12, costing $2,440, and PP-14, with a cost of $958. Costs for both jobs were transferred to Cost of Services Billed during the month. Also during September, Jobs PP-24 and PP-30 were completed. Completing Job PP-24 required an additional $1,440 in direct labor. The completion costs for Job PP-30 included $686 in direct materials and $4,200 in direct labor. Pete's Patios used a total of $1,944 of direct materials (excluding the $105 indirect materials) during the period, and total direct labor costs during the month amounted to $8,190. Overhead has been estimated at 50 percent of direct labor costs, and this relation has been the same for the past few years. Required: Compute the costs to Jobs PP-24 and PP-30 and the balances in the September 30 inventory accounts. Cost to complete PP-24 Cost to complete PP-30 Balance of Materials Inventory as of September 30 Balance of Work-in-Process as of September 30 Balance of Finished Goods Inventory as of September 30

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter5: Product And Service Costing: Job-order System
Section: Chapter Questions
Problem 17E: During August, Skyler Company worked on three jobs. Data relating to these three jobs follow:...
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Problem 7-57 (Algo) Job Costs in a Service Company (LO 7-4) On September 1, two jobs were in process at Pete's Patios. Details of the jobs follow: Direct Materials $1,024 695 Job Number PP-24 PP-30 Direct Labor $426 1,720 Materials Inventory on September 1 totaled $5,460, and $676 worth of materials was purchased during the month. Indirect materials of $105 were withdrawn from materials inventory. On September 1, finished goods inventory consisted of two jobs, PP-12, costing $2,440, and PP-14, with a cost of $958. Costs for both jobs were transferred to Cost of Services Billed during the month. Also during September, Jobs PP-24 and PP-30 were completed. Completing Job PP-24 required an additional $1,440 in direct labor. The completion costs for Job PP-30 included $686 in direct materials and $4,200 in direct labor. Pete's Patios used a total of $1,944 of direct materials (excluding the $105 indirect materials) during the period, and total direct labor costs during the month amounted to $8,190. Overhead has been estimated at 50 percent of direct labor costs, and this relation has been the same for the past few years. Required: Compute the costs to Jobs PP-24 and PP-30 and the balances in the September 30 inventory accounts. Cost to complete PP-24 Cost to complete PP-30 Balance of Materials Inventory as of September 30 Balance of Work-in-Process as of September 30 Balance of Finished Goods Inventory as of September 30
Transcribed Image Text:Problem 7-57 (Algo) Job Costs in a Service Company (LO 7-4) On September 1, two jobs were in process at Pete's Patios. Details of the jobs follow: Direct Materials $1,024 695 Job Number PP-24 PP-30 Direct Labor $426 1,720 Materials Inventory on September 1 totaled $5,460, and $676 worth of materials was purchased during the month. Indirect materials of $105 were withdrawn from materials inventory. On September 1, finished goods inventory consisted of two jobs, PP-12, costing $2,440, and PP-14, with a cost of $958. Costs for both jobs were transferred to Cost of Services Billed during the month. Also during September, Jobs PP-24 and PP-30 were completed. Completing Job PP-24 required an additional $1,440 in direct labor. The completion costs for Job PP-30 included $686 in direct materials and $4,200 in direct labor. Pete's Patios used a total of $1,944 of direct materials (excluding the $105 indirect materials) during the period, and total direct labor costs during the month amounted to $8,190. Overhead has been estimated at 50 percent of direct labor costs, and this relation has been the same for the past few years. Required: Compute the costs to Jobs PP-24 and PP-30 and the balances in the September 30 inventory accounts. Cost to complete PP-24 Cost to complete PP-30 Balance of Materials Inventory as of September 30 Balance of Work-in-Process as of September 30 Balance of Finished Goods Inventory as of September 30
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