Job order system | Accounting homework help



Accounting for a Job-Order Cost System [LO 3, 6, 7, 9] Bob and Beth Ford retired from the food services industry and began catering wedding receptions on a limited basis. The major costs in setting up their business included: linens, $2,000; two complete silver services, $1,900; glass plates and cups, $1,600; and cake-decorating tools and accessories, $800. It is expected that all of these items will last 10 years with no salvage value. Bob and Beth do all their food preparation in their apartment and have found that, in an average month, their utility bill is $100 higher than when they did not cater. All baking and cooking supplies are treated as “direct materials,” and the only other cost incurred is liability insurance at $1,600 per year. All direct materials are purchased at a local grocery for cash, and Bob and Beth pay themselves an hourly wage of $34 per hour. During the month of June, Bob and Beth catered five weddings. 

Materials Labor Hours Redfern wedding $590 29 Miller wedding 860 41 Walker wedding 619 22 DeSilva wedding 1,720 90 Estes wedding 620 34 The overhead allocation base is labor hours with an estimated 1,000 hours per year, and billings are at 120 percent of job cost. Overhead allocations and markups are rounded to the nearest dollar. Incorrect. Prepare job cost sheets for each of the five catering jobs. (Round final answers to 2 decimal places, e.g. 5.25.)Redfern Wedding Materials $ 590.00 Labor 986.00 Overhead Total $ Miller Wedding Materials $ 860.00 Labor 1394.00 Overhead Total $ Walker Wedding Materials $ 619.00 Labor 748.00 Overhead Total $ DeSilva Wedding Materials $ 1720.00 Labor 3060.00 Overhead Total $ Estes Wedding Materials $ 620.00 Labor 1156.00 Overhead Total $ 

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