28PGA_e Clement Manufacturing makes carr... [FREE SOLUTION]

Chapter 17: 28PGA_e (page 947)

Clement Manufacturing makes carrying cases for portable electronic devices. Its costing records yield the following information:
Job No.
Date
Total cost of Job at October 31
Total manufacturing costs added in November
Started
Finished
Sold
1
10/03
10/12
10/13
$1,300
2
10/03
10/30
11/01
1,400
3
10/17
11/24
11/27
1,000
$900
4
10/29
11/29
12/03
1,200
1,200
5
11/08
11/12
11/14
650
6
11/23
12/06
12/09
500
Requirements
5. What is the gross profit for Job 3?

Expert verified

The Gross profit for Job no. 3 is $400

The net income of the company means the income earned after deducting all the expenses and the taxes incurred by the company in running the business.

$\begin{matrix} Grossprofit = Sales - Costofgoodssold \\ = $ 2, 300 - $ 1, 900 \\ = $ 400 \end{matrix}$

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Overhead allocated to production	\(409,200
Actual manufacturing overhead cost	432,000
Predetermined overhead allocation rate	\)44 per machine hours

June 1 balance	\(36,000
Direct materials used	32,000
Direct labor assigned to jobs	40,000
Manufacturing overhead allocated to jobs	28,000

Job No.	Date	Total cost of Job at October 31	Total manufacturing costs added in November
Started	Finished	Sold
1	10/03	10/12	10/13	\(1,300
2	10/03	10/30	11/01	1,400
3	10/17	11/24	11/27	1,000	\)900
4	10/29	11/29	12/03	1,200	1,200
5	11/08	11/12	11/14		650
6	11/23	12/06	12/09		500