My question is in the photo please help . Can any one help?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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My question is in the photo please help . Can any one help?
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Expert Solution
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Step 1
Job order costing is a costing technique used to determine cost of performing job or cost of manufacturing a particular product. It includes the direct labor, direct materials, and manufacturing overhead for that particular job.
Step 2
A. Work-in-process:
Job C = Direct material used + Direct labor + Applied manufacturing overhead
= 6,000 + 2,000 + (Direct labor hours x Predetermined overhead rate)
= 8,000 + (100* x 15)
= 8,000 + 1,500 = $9,500
* Direct labor / Direct labor rate
= 2,000 /20 = 100 hours
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