12. A company had the following total usage of direct labor and direct materials Pounds Hours 400 Direct labor (P8 per hour) Direct materials (P10 per pound) Incomplete Job 101 has used 20 hours of direct labor and 8 pounds of direct materials. Factory overhead is applied at the rate of 200% per direct labor peso. What is the balance of work-in-process relating to Job 101? a. P560 debit 300 b. P560 credit C. P12,600 debit d. P12,600 credit

12. A company had the following total usage of direct labor and direct materials Pounds Hours 400 Direct labor (P8 per hour) Direct materials (P10 per pound) Incomplete Job 101 has used 20 hours of direct labor and 8 pounds of direct materials. Factory overhead is applied at the rate of 200% per direct labor peso. What is the balance of work-in-process relating to Job 101? a. P560 debit 300 b. P560 credit C. P12,600 debit d. P12,600 credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

12. A company had the following total usage of direct labor and direct materials
Pounds
Hours
400
Direct labor (P8 per hour)
Direct materials (P10 per pound)
Incomplete Job 101 has used 20 hours of direct labor and 8 pounds of direct materials. Factory overhead is
applied at the rate of 200% per direct labor peso. What is the balance of work-in-process relating to Job 101?
a. P560 debit
300
b. P560 credit
C. P12,600 debit
d. P12,600 credit

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