Okinawa Company uses job-order costing
Okinawa Company uses job-order costing. They worked on three jobs in July. Data are as follows: Job 2106 $ Job 2107 $ Job 2108 Direct materials $10 450 $12 300 $16 150 Direct labour $16 000 $12 200 $24 000 Machine hours 500 300 1 000 Balance, 1 July $21 310 $6 250 $0 Overhead is applied to jobs at the rate of $16 per machine hour. By 31 July, Jobs 2106 and 2108 were completed. Jobs 2102 and 2106 were sold. Job 2107 remained n process. On 1 July, the balance in Finished Goods was $49 000 (consisting of Job 2102 for $25 600 and Job 2104 for $23 400). Okinawa prices its jobs at cost plus 30%.…
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