Exercise 2-10 Applying Overhead Cost to a Job [LO2-2] Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $5,000 for direct materials, $8,000 for direct labor, and $6,000 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $2,500 for direct materials and $4,000 for direct labor. Required: la. Should any overhead cost be applied to Job W at year-end? Yes No 1b. How much overhead cost should be applied to Job W? Overhead cost 2. How will the costs included in Job W's job cost sheet be reported within Sigma Corporation's financial statements at the end of the year? Raw Materials Work-in-Process Finished Goods
Exercise 2-10 Applying Overhead Cost to a Job [LO2-2] Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $5,000 for direct materials, $8,000 for direct labor, and $6,000 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $2,500 for direct materials and $4,000 for direct labor. Required: la. Should any overhead cost be applied to Job W at year-end? Yes No 1b. How much overhead cost should be applied to Job W? Overhead cost 2. How will the costs included in Job W's job cost sheet be reported within Sigma Corporation's financial statements at the end of the year? Raw Materials Work-in-Process Finished Goods
Chapter1: Financial Statements And Business Decisions
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![Exercise 2-10 Applying Overhead Cost to a Job [LO2-2]
Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the
current period, shows charges of $5,000 for direct materials, $8,000 for direct labor, and $6,000 for overhead on its job cost sheet.
Job W, which is still in process at year-end, shows charges of $2,500 for direct materials and $4,000 for direct labor.
Required:
la. Should any overhead cost be applied to Job W at year-end?
Yes
No
1b. How much overhead cost should be applied to Job W?
Overhead cost
2. How will the costs included in Job W's job cost sheet be reported within Sigma Corporation's financial statements at the end of the
year?
Raw Materials
Work-in-Process
Finished Goods](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8aeb4c9c-8d33-4b47-954d-a4d3ce02aa40%2F9421fd1b-4ab9-4ebc-82ac-7db9f5948991%2F1fcyhql.png&w=3840&q=75)
Transcribed Image Text:Exercise 2-10 Applying Overhead Cost to a Job [LO2-2]
Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the
current period, shows charges of $5,000 for direct materials, $8,000 for direct labor, and $6,000 for overhead on its job cost sheet.
Job W, which is still in process at year-end, shows charges of $2,500 for direct materials and $4,000 for direct labor.
Required:
la. Should any overhead cost be applied to Job W at year-end?
Yes
No
1b. How much overhead cost should be applied to Job W?
Overhead cost
2. How will the costs included in Job W's job cost sheet be reported within Sigma Corporation's financial statements at the end of the
year?
Raw Materials
Work-in-Process
Finished Goods
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