AP 2-10 Accounting for cost order system;
Major costs for setting up business Linens $1400, two complete silver services $1700, glass plates and cups $2400 and cake tools/accessories $800. All of these items willl last 10 years with no salvage value. On average utilites are $200 higher than when not catering. All baking and cooking supplies are treated as direct materials and the only cost incurred is liability insurance at $1700 per year. All direct materials are brought with cash and the owners pay themselves $38 dollars per hour. Duning the month of June 5 weddings were catered:
Redfern wedding-direct costs $480, labor 27 hours, Miller wedding-$820 direct costs, 44 hours labor, Walker wedding-$563 direct costs, 23 hours labor, DeSilva wedding-$1850 direct costs, 94 hours labor and Estes wedding $620 direct costs, 31 hours labor.Prepare job costs sheets for each of the five catering jobs and calculate income for the month of June.