Morant, Inc. uses a job order costing system and applies overhead on the basis of 125% of direct labor cost. On June 1, 2024, the balance in the work in process inventory account was $197,100. During June, Morant had the following transactions: Raw materials purchased Raw materials used Direct labor costs incurred Actual manufacturing overhead costs incurred Cost of completed jobs $50,200 $50,800 $48,200 $63,700 $87,000 Assume all raw materials are direct materials. What is the balance in Morant's work in process inventory account at June 30?
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![Morant, Inc. uses a job order costing system and applies overhead on the basis of 125% of
direct labor cost. On June 1, 2024, the balance in the work in process inventory account
was $197,100.
During June, Morant had the following transactions:
Raw materials purchased
Raw materials used
Direct labor costs incurred
Actual manufacturing overhead costs incurred
Cost of completed jobs
$50,200
$50,800
$48,200
$63,700
$87,000
Assume all raw materials are direct materials. What is the balance in Morant's work in
process inventory account at June 30?
(Hint: The slide with the fire trucks... what affects the work in process account?]
1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb56c8b13-6e3b-40a5-91a2-0161e07a934e%2Ff8be0f88-49bc-434a-8b27-508c618b2448%2Fevbh6kr_processed.jpeg&w=3840&q=75)
Step by step
Solved in 3 steps with 1 images
