Question: 2014 Date Explanation Debit Dec. Direct materials cost $1,250,000 31 31 Direct labor cost 31 Overhead costs $ 300,000 $400,000 31 To finished goods Credit Balance $1,250,000 $1,800,000 $2,400,000 $2,350,000 $50,000 1) Determine the overhead rate used (based on the direct material cost). 2) Only one job remained in the goods in process inventory at December 31, 2014. Its direct materials cost is $30,000. How much direct labor cost and overhead cost are assigned to it?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question:
2014
Date Explanation
Debit
Dec. Direct materials cost $1,250,000
31
31
Direct labor cost
31
Overhead costs
$ 300,000
$400,000
31
To finished goods
Credit
Balance
$1,250,000
$1,800,000
$2,400,000
$2,350,000 $50,000
1) Determine the overhead rate used (based on the direct material
cost).
2) Only one job remained in the goods in process inventory at
December 31, 2014. Its direct materials cost is $30,000. How much
direct labor cost and overhead cost are assigned to it?
Transcribed Image Text:Question: 2014 Date Explanation Debit Dec. Direct materials cost $1,250,000 31 31 Direct labor cost 31 Overhead costs $ 300,000 $400,000 31 To finished goods Credit Balance $1,250,000 $1,800,000 $2,400,000 $2,350,000 $50,000 1) Determine the overhead rate used (based on the direct material cost). 2) Only one job remained in the goods in process inventory at December 31, 2014. Its direct materials cost is $30,000. How much direct labor cost and overhead cost are assigned to it?
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