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.
