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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 0 1,100,000 280,000 429,000 78,000 Credit 1,731,000 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 $37,000. How much direct labor cost and applied overhead are assigned to this job?

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 0 1,100,000 280,000 429,000 78,000 Credit 1,731,000 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 $37,000. How much direct labor cost and applied overhead are assigned to this job?

FINANCIAL ACCOUNTING
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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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 0 1,100,000 280,000 429,000 78,000 Credit 1,731,000 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 $37,000. How much direct labor cost and applied overhead are assigned to this job?
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 0 1,100,000 280,000 429,000 78,000 Credit 1,731,000 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 $37,000. 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 X Answer is complete but not entirely correct. Only one job remains in work in process inventory at year-end. Its direct materials cost is $37,000. How much direct labor cost and applied overhead are assigned to this job? $ Total cost of job in process Less: Direct materials cost of job in process Less: Overhead applied Direct labor cost X 1,653,000 37,000 14,430 $ 538,570 X < Required 1 Required 2
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required 1 Required 2 X Answer is complete but not entirely correct. Only one job remains in work in process inventory at year-end. Its direct materials cost is $37,000. How much direct labor cost and applied overhead are assigned to this job? $ Total cost of job in process Less: Direct materials cost of job in process Less: Overhead applied Direct labor cost X 1,653,000 37,000 14,430 $ 538,570 X < Required 1 Required 2
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