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Sanibel Plumbing Company_job order costing




Question;Sanibel Plumbing Company employs 30 people and serves the Fort Myers;area, It earns roughly half its revenue from installing plumbing in newly;constructed houses and half from plumbing repairs and remodeling jobs in older;houses. It uses job order cost cards to keep track of the costs incurred on;each job. Job costs (direct materials and supplies, direct labor, and service;overhead) are categorized under three activities: plumbing system design;system installation, and job-site cleanup. The service overhead charge for;plumbing system design is 30 percent of engineering labor costs, and the;overhead charge for system installation is 50 percent of direct labor costs.;Sanibel has tracked all costs of the;Clary job, and now that the work is finished, it is time to complete the job;order costs card. Its costs-plus contract with Clary has a 25 percent profit;guarantee. The costs for the job areas follows;Beginning Balances;Plumbing;system design $2,635;System Installation;14,250;Job-site;cleanup;75;Costs During October;Plumbing system design;Supplies = 0;Engineering;Labor = 250;System Installation =;Materials = 2150;Direct;labor = 6400;Job-site cleanup;Janitorial =;service cost 525;Required;1. Create the job order cost card for the Clary job.;2. What amount will Sanibel Plumbing Company bill for the Clary;job?;3. Using the format of the Work in Process Inventory account;reconstruct the beginning balance and costs;for the current month.


Paper#37217 | Written in 18-Jul-2015

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