Analyzing costs in a job company. On February 1, the Bocelli Landscaping Company had two jobs in process with the following costs:
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Direct Materials
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Direct Labor
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Wilson
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$3,000
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$12,000
|
|
Baker
|
2,400
|
9,600
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In addition, overhead was and is applied to these jobs at the rate of 80 percent of direct labor costs.
On February 1, Bocelli had materials inventory totaling $6,000. During February, Bocelli purchased $12,000 of materials and had none left in materials inventory at the end of the month. (However, Bocelli had some materials in Work-in-Process Inventory at the end of the month.) During February, Bocelli completed both the Wilson and Baker jobs and recorded them as Cost of Goods Sold. The Wilson job required no more materials in February, but it did require
$3,600 of direct labor to complete. The Baker job required $6,000 of direct labor to complete. Bocelli started a new job for Ottley during February and put $4,800 of direct labor costs into this job. Unfortunately, Bocelli lost the records of materials used on this job but knows all the materials available in February went into the Ottley job. The Ottley job is still in
Work-in-Process Inventory at the end of the month.
Bocelli wants to know the total cost of the Wilson and Baker jobs, and the cost to date for the Ottley job, for billing purposes. Provide the cost of direct materials, direct labor, and overhead (at 80 percent of direct labor cost) for the three jobs.