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Vaughn Company uses a job order cost system. On May 1, the company has the following balances:

- Raw Materials Inventory: [tex]$15,600
- Work in Process Inventory: $[/tex]3,920

Jobs in process:
- Job No. 429: [tex]$2,490
- Job No. 430: $[/tex]1,430

During May, the company incurred factory labor of [tex]$14,890.

Summary of source documents:
- Materials Requisition Slips:
- Job No. 429: $[/tex]2,710
- Job No. 430: [tex]$4,040
- Job No. 431: $[/tex]4,730
- General use: [tex]$970
- Total: $[/tex]12,450
- Labor Time Tickets:
- Job No. 429: [tex]$2,230
- Job No. 430: $[/tex]3,500
- Job No. 431: [tex]$7,860
- General use: $[/tex]1,300
- Total: $14,890

Vaughn Company applies manufacturing overhead to jobs at an overhead rate of 70% of direct labor cost. Job No. 429 is completed during the month.

Sagot :

GinnyAnswer
Certainly! Let's break down the scenario step by step to understand the solution in detail.

### Step 1: Summarize Initial Balances
The company began May with the following balances:
- Raw Materials Inventory: \[tex]$15,600 - Work in Process Inventory: \$[/tex]3,920, which includes two jobs:
- Job No. 429: \[tex]$2,490 - Job No. 430: \$[/tex]1,430

### Step 2: Summarize Factory Labor Costs for May
The factory labor incurred for May is \[tex]$14,890. ### Step 3: Summarize Materials Requisition Slips The total materials used for each job and general purposes are: - Job No. 429: \$[/tex]2,710
- Job No. 430: \[tex]$4,040 - Job No. 431: \$[/tex]4,730
- General use: \[tex]$970 Summing these values gives us the total materials used in May: \[ 2710 + 4040 + 4730 + 970 = 12450 \] ### Step 4: Summarize Labor Time Tickets The total labor costs for each job and general purposes are: - Job No. 429: \$[/tex]2,230
- Job No. 430: \[tex]$3,500 - Job No. 431: \$[/tex]7,860
- General use: \[tex]$1,300 Summing these values gives us the total labor costs in May: \[ 2230 + 3500 + 7860 + 1300 = 14890 \] ### Step 5: Calculate Overhead Applied The overhead rate is 70% of direct labor costs. The overhead applied for each job and general purposes are: - Job No. 429: \( 2230 \times 0.70 = 1561 \) - Job No. 430: \( 3500 \times 0.70 = 2450 \) - Job No. 431: \( 7860 \times 0.70 = 5502 \) - General use: \( 1300 \times 0.70 = 910 \) Summing these values gives us the total overhead applied in May: \[ 1561 + 2450 + 5502 + 910 = 10423 \] ### Step 6: Calculate the Total Cost of Job No. 429 Job No. 429's total cost includes its beginning balance, materials, labor, and applied overhead: \[ \text{Job 429 Total Cost} = \text{Beginning Balance} + \text{Materials} + \text{Labor} + \text{Overhead Applied} \] \[ 2490 + 2710 + 2230 + 1561 = 8991 \] ### Summary of Calculations Now, summarizing everything we have calculated: - Total materials used in May: \$[/tex]12,450
- Total labor costs in May: \[tex]$14,890 - Total overhead applied in May: \$[/tex]10,423
- Job No. 429 total cost: \[tex]$8,991 These values correspond to the answer obtained. ### Final Answer Therefore, we have: - Total materials used in May: \$[/tex]12,450
- Total labor costs in May: \[tex]$14,890 - Total overhead applied in May: \$[/tex]10,423
- Job No. 429 total cost: \$8,991

These are the final values for each component.
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