Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account shows the following Debit Beginning Direct materials used Direct labor used Overhead Ending Work in Process Inventory 1,600,000 230,000 592,000 95,000 Credit 2.327,000 Cost of goods manufactured 1. Determine the predetermined overhead rate used (based on direct materials cost). 2. Only one job remains in work in process inventory at year-end. Its direct materials cost is $32,000. How much direct labor cost and applied overhead are assigned to this job? Complete this question by entering your answers in the tabs below.
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account shows the following Debit Beginning Direct materials used Direct labor used Overhead Ending Work in Process Inventory 1,600,000 230,000 592,000 95,000 Credit 2.327,000 Cost of goods manufactured 1. Determine the predetermined overhead rate used (based on direct materials cost). 2. Only one job remains in work in process inventory at year-end. Its direct materials cost is $32,000. How much direct labor cost and applied overhead are assigned to this job? Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
subject:
Transcribed Image Text:Required 1 Required 2
Only one job remains in work in process inventory at year-end. Its direct mater
cost and applied overhead are assigned to this job?
Total cost of job in process
Direct labor cost
Transcribed Image Text:Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account
shows the following.
Debit
Beginning
Direct materials used
Direct labor used
Overhead
Ending
Work in Process Inventory
1,600,000
230,000
592,000
95,000
Numerator:
Credit
2,327,000 Cost of goods manufactured
1. Determine the predetermined overhead rate used (based on direct materials cost).
2. Only one job remains in work in process inventory at year-end. Its direct materials cost is $32,000. How much direct labor cost and
applied overhead are assigned to this job?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Determine the predetermined overhead rate used (based on direct materials cost).
Overhead Rate
Denominator:
Overhead Rate
Overhead rate
Required 2 >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education