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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 $6,700 for direct materials, $8,500 for direct labor, and $5,780 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $4,400 for direct materials and $4,400 for direct labor. Required: 1a. Should any overhead cost be applied to Job W at 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?

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 $6,700 for direct materials, $8,500 for direct labor, and $5,780 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $4,400 for direct materials and $4,400 for direct labor. Required: 1a. Should any overhead cost be applied to Job W at 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?

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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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 $6,700 for direct materials, $8,500 for direct labor, and $5,780 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $4.400 for direct materials and $4,400 for direct labor. Required: 1a. Should any overhead cost be applied to Job W at 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? Complete this question by entering your answers in the tabs below. Required 1a Required 1b Required 2 Should any overhead cost be applied to Job W at year-end? Should any overhead cost be applied to Job W at year-end? < Required la Required 1b > < Prev 7 of 7 Next > 4
Transcribed Image Text: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 $6,700 for direct materials, $8,500 for direct labor, and $5,780 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $4.400 for direct materials and $4,400 for direct labor. Required: 1a. Should any overhead cost be applied to Job W at 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? Complete this question by entering your answers in the tabs below. Required 1a Required 1b Required 2 Should any overhead cost be applied to Job W at year-end? Should any overhead cost be applied to Job W at year-end? < Required la Required 1b > < Prev 7 of 7 Next > 4
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