A new company started production. Job 10 was completed, and Job 20 remains in production. Here is the information from job cost sheets from their first and only jobs so far: Job 10                                     Hours       Total Cost                Job 20                                  Hours       Total Cost  Direct material                                             $765                        Direct material                                        $145 Direct labor                              75                  1,575                     Direct labor                           113             2,373 Manufacturing overhead                                60                          Manufacturing overhead                          90 Total cost                                                        $2,400                  Total cost                                                 $2,608   PLEASE NOTE #1: Account balances will be rounded to whole dollars and shown with "$" and commas as needed ($12,.345). PLEASE NOTE #2: Predetermined overhead rates will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $12,345.67). The rates will include their proper label according to the textbook examples (no abbreviations). Using the information provided, What is the balance in work in process?  What is the balance in the finished goods inventory?  If manufacturing overhead is applied on the basis of direct labor hours, what is the predetermined overhead rate?  per ? .

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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4. A new company started production. Job 10 was completed, and Job 20 remains in production. Here is the information from job cost sheets from their first and only jobs so far:

Job 10                                     Hours       Total Cost                Job 20                                  Hours       Total Cost 

Direct material                                             $765                        Direct material                                        $145

Direct labor                              75                  1,575                     Direct labor                           113             2,373

Manufacturing overhead                                60                          Manufacturing overhead                          90

Total cost                                                        $2,400                  Total cost                                                 $2,608

 

PLEASE NOTE #1: Account balances will be rounded to whole dollars and shown with "$" and commas as needed ($12,.345).

PLEASE NOTE #2: Predetermined overhead rates will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $12,345.67). The rates will include their proper label according to the textbook examples (no abbreviations).

Using the information provided,

  1. What is the balance in work in process? 
  2. What is the balance in the finished goods inventory? 
  3. If manufacturing overhead is applied on the basis of direct labor hours, what is the predetermined overhead rate?  per ? .
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