Question

The following information is from the materials requisitions and time tickets for Job 9-1005 completed by Great Bay Boats. The requisitions are identified by code numbers starting with the letter Q, and the time tickets start with W. At the start of the year, management estimated that overhead cost would equal 110% of direct labor cost for each job. Determine the total cost on the job cost sheet for Job 9-1005.

Date	Document	Amount
7/1/2017	Q-4698	$1,250
7/1/2017	W-3393	600
7/5/2017	Q-4725	1,000
7/5/2017	W-3479	450
7/10/2017	W-3559	300

Short answer

The total cost for Job 9-1005 is $5,085.

Step-by-step solution

Meaning of Job cost sheet

A job cost sheet is a list of a job's actual costs. The management team receives the report, which was put together by the accounting department, to determine whether work was bid correctly.

Determining the total cost on the job cost sheet

Calculating total direct material cost:

Requisitions are identified by code numbers starting with the letter Q

$$\begin{gathered} \text{Total}\text{direct}\text{material}\text{cost}=\text{Q -}4698+\text{Q -}4725 \\ =\$1,250+1,000 \\ =\$2,250 \end{gathered}$$

Calculating total direct labor cost:

Time tickets start with W

$$\begin{gathered} \text{Total}\text{direct}\text{labor}\text{cost}=\text{W -}3393+\text{W -}3479+\text{W -}3559 \\ =600+450+300 \\ =\$1,350 \end{gathered}$$

Calculating total overhead cost:

$$\begin{gathered} \text{Total}\text{overhead}\text{cost}=\text{Total}\text{direct}\text{labor}\text{cost}\times \text{Percentage}\text{of}\text{direct}\text{labor}\text{cost} \\ =\$1,350\times 110\% \\ =\$1,485 \end{gathered}$$

Calculate Total Cost for Job 9-1005:

$$\begin{gathered} \text{Total}\text{cost}\text{for}\text{Job}9\text{-}1005=\text{Total}\text{direct}\text{material}\text{cost}+\text{Total}\text{direct}\text{labor}\text{cost}+\text{Total}\text{overhead}\text{cost} \\ =\$2,250+\$1,350+\$1,485 \\ =\$5,085 \end{gathered}$$