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Rick, a homebuilder, uses job order costing for his business. Each new home is a single job. During April, Rick started three new houses, one of which was Job Tudor2. Rick purchased $150,000 of materials for the new home orders and stored them in a warehouse to be brought to the job sites as needed. In April, Rick requisitioned $85,000 of material for Job Tudor2. Direct labor on Tudor2 was $4,800 in April. Overhead is applied at 150% of direct labor cost. What is on the job cost sheet for Tudor2 at April 30?

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Answer:

Job cost sheet for Tudor 2 at April 30 is $97,000

Explanation:

When using job order costing all the cost directly related to de order to the order are assigned to it's respective cost sheet. The materials and work used in each particular order can be perfectly identified.

During April materiales used in order Tudor 2 are $85,000

Direct Labor used in order Tudor 2 is $4,800

Overhead is applied at 150% of direct labor cost son it is $4.800*1.5=$7,200

So:

$85,000

+

$4,800

+

$7,200

-------------

$97,000

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