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Garrison's Yost Precision Machining: job cost sheet of job 2B47
| Tool | Job Quote Builder |
| Source | Seal, W., Garrison, R. H., and Noreen, E. W. (2009). Management Accounting, 3rd ed. McGraw-Hill, Maidenhead. Chapter 3, Exhibits 3.1, 3.3 and 3.4. |
| Level | Undergraduate |
Problem
Yost Precision Machining makes two experimental couplings on job 2B47. Materials requisition 14873 draws two M46 housings at 124 and four G7 connectors at 103; two further requisitions add 506 and 238. Four time tickets record 5, 8, 4 and 10 direct labour hours at 9.00, 7.50, 5.25 and 5.40 per hour. Manufacturing overhead is applied at a predetermined rate of 320,000 / 40,000 = 8 per direct labour-hour. Complete the job cost sheet and find the cost per coupling.
Inputs to Enter
- Example select: Garrison, Yost Precision Machining job 2B47
- Materials per unit: M46 housing 1 × 124, G7 connector 2 × 103, requisition 14875 materials 253, requisition 14912 materials 119
- Labour per unit: 2.5 h at 9.00, 4 h at 7.50, 2 h at 5.25, 5 h at 5.40 (the four tickets spread over the two units)
- Overhead 8.00 per direct labour-hour; quantity 2; no markup, G&A or contingency
Answers
- Requisition 14873 = 248 + 412 = 660; direct materials of the job 1,404
- Direct labour 27 hours, 180 (tickets 45 + 60 + 21 + 54)
- Overhead applied 27 × 8 = 216 (120 % of direct labour gives the same); total job cost 1,800; unit cost 900, the price at which the two couplings are sold
Notes
Choose the Yost entry in the example select. The open sample chapter is the UK edition of Garrison's illustration; the US Managerial Accounting prints the same sheet in dollars.