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. Beginning Direct materials used Direct labor used Overhead applied Ending Debit Required 1 Required 2 Work in Process Inventory Numerator: B 1,500,000 220,000 615,000 1 T 1 79,000 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 $31,000. How much direct labor cost and applied overhead are assigned to this job? Complete this question by entering your answers in the tabs below. 2,256,000 Cost of goods manufactured Determine the predetermined overhead rate used (based on direct materials cost). Credit Overhead Rate Denominator: = Overhead Rate Overhead rate = Required 2 > 2

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. Beginning Direct materials used Direct labor used Overhead applied Ending Debit Required 1 Required 2 Work in Process Inventory Numerator: B 1,500,000 220,000 615,000 1 T 1 79,000 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 $31,000. How much direct labor cost and applied overhead are assigned to this job? Complete this question by entering your answers in the tabs below. 2,256,000 Cost of goods manufactured Determine the predetermined overhead rate used (based on direct materials cost). Credit Overhead Rate Denominator: = Overhead Rate Overhead rate = Required 2 > 2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Johnson Incorporated is a job-order manufacturing company that uses a predetermined overhead rate based on direct labo hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 88,000 and estimated factory overhead is $660,000. The following information is for September of the current year. Job A was completed during September, and Job B was started but not finished. September 1, inventories Materials inventory Work-in-process inventory (All Job A) Finished goods inventory Material purchases Direct materials requisitioned Job A Job B Direct labor hours Job A Job B Labor costs incurred Direct labor ($9.50/hour) Indirect labor Supervisory salaries Rental costs Factory Administrative offices Total equipment depreciation costs Factory Administrative offices Indirect materials used $ 7,900 32,000 69,000 110,000 69,000 35,500 4,600 3,900 80,750 13,900 6,400 7,400 2,200 8,100 2,200 12,400 Required: 1. What is the total cost of Job A? 2. What is the…
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 $5,900 for direct materials, $8,600 for direct labor, and $5,332 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $3,500 for direct materials and $5,200 for direct labor. Required: 1a. Should any overhead cost be applied to Job W at year-end? O Yes O 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? O Raw Materials Work-in-Process O Finished Goods
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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 $6,500 for direct materials, $9, 700 for direct labor, and S 7,081 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $4, 200 for direct materials and $4, 200 for direct labor. Required: 1a. Should any overhead cost be applied to Job Wat year-end? 1b. How much overhead cost should be applied to Job W? 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?
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Saved Blueberry Corp. uses a job order costing system with manufacturing overhead applied to products on the basis of machine hours. For the upcoming year, Blueberry Corp. estimated total manufacturing overhead cost at $333,500 and total machine hours of 46,000. During the year actual manufacturing overhead incurred was $323,680 and 47,600 machine hours were used. (a) Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.) Pdetemined Overhed Rate per hour