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Vladimir79 [104]
3 years ago
6

Stutz, Inc. designs and builds basketball gymnasiums. Each gymnasium is custom-built to individual customers’ specifications. St

utz uses job-order costing to keep track of its costs. In February it worked on three jobs. Data for these jobs are as follows: Job 175 Job 178 Job 179 Balance 2/1 $13,790 $ 0 $ 0 Direct Materials 16,200 8,500 30,500 Direct Labor Cost 23,300 7,600 45,000 Machine Hours 400 hrs. 300 hrs. 2,000 hrs. ​ Overhead is applied to jobs at the rate of $25 per machine hour. By February 28, Job 178 is the only one unfinished. The balance of Finished Goods on February 1 is $94,000 (consisting of Job 177). Jobs 177 and 179 are sold during February. Stutz sells its product at cost plus 40%. Refer to Figure 5-6. What is sales revenue for February?
Business
1 answer:
Volgvan3 years ago
6 0

Answer:

$307,300

Explanation:

Total cost of Job 179:

= Direct material for Job 179 + Direct labor cost for Job 179 + Overhead cost for Job 179

= $30,500 + $45,000 + (2,000 × $25)

= $30,500 + $45,000 + $50,000

= $125,500

Total cost of Job 177 and Job 179:

= Total cost of Job 179 + cost of Job 177

= $125,500 + $94,000

= $219,500

Sales revenue for February:

= Total cost of Job 177 and Job 179 × Markup percentage

=  $219,500 + ($219,500 × 40%)

= $219,500 + $87,800

= $307,300

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