Croftmark Co. began operations on May 1. Its Work in Process Inventory account on May 31 appeared as follows: Work in Process Inventory Direct material 249,480 Cost of completed jobs ?? Direct labor 172,800 Applied overhead 241,920
Croftmark Co. began operations on May 1. Its Work in Process Inventory account on May 31 appeared as follows: Work in Process Inventory Direct material 249,480 Cost of completed jobs ?? Direct labor 172,800 Applied overhead 241,920
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Croftmark Co. began operations on May 1. Its Work in Process Inventory account on May 31 appeared as follows:
| Work in Process Inventory | |||
|---|---|---|---|
| Direct material | 249,480 | Cost of completed jobs | ?? |
| Direct labor | 172,800 | ||
| Applied |
241,920 | ||
The company applies overhead on the basis of direct labor cost. Only one job was still in process on May 31. That job had $67,905 in direct material and $32,580 in direct labor cost assigned to it.
a. What was the predetermined overhead application rate? Enter your answer as a whole percentage. Answer
%
b. What was the balance in WIP Inventory at the end of May? $Answer
c. What was the total cost of jobs completed in May? $Answer
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