SIM Industrial Pte Ltd uses a job-order costing system and applies manufacturing overhead
to jobs using a predetermined overhead rate based on direct labour hours.
At the beginning of the year, the company estimated manufacturing overhead for the year
would be $240,000 and direct labour hours would be 8,000
The following information pertains to November of the current year:
Job 10 Job 11 Job 12 Total
Work-in-process,Nov.1 $16,000 $26,000 $38,000 $80,000
November production activity:
Materials requisitioned $4,000 $4,800 $7,200 $16,000
Direct labour cost $2,400 $3,600 $4,000 $10,000
Machine hours 400 700 900 2,000
The direct labour cost per hour is $20. Actual manufacturing overhead cost incurred in
November was $ 18,000.
Required:
(a)Determine the accumulated total costs of each job as at 30 November.(11marks)
Invoices can be posted in proportion to the hours.
similarly for the rest of the work
After the distribution of overhead costs, you can calculate the total cost of the work, add up the direct and overhead costs.
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