The Work in Process Inventory account of a manufacturing company has a $7,305 debit balance. The company applies overhead using direct labor cost. The cost sheet of the only job still in process shows direct material cost of $2,700 and direct labor cost of $1,500. Therefore, the company's predetermined overhead rate is: Multiple Choice 56% of direct labor cost. 115% of direct lebor cost. 48% of direct labor cost. 207% of direct labor cost. 180% of direct labor cost.

The Work in Process Inventory account of a manufacturing company has a $7,305 debit balance. The company applies overhead using direct labor cost. The cost sheet of the only job still in process shows direct material cost of $2,700 and direct labor cost of $1,500. Therefore, the company's predetermined overhead rate is: Multiple Choice 56% of direct labor cost. 115% of direct lebor cost. 48% of direct labor cost. 207% of direct labor cost. 180% of direct labor cost.

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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A company that uses job order costing uses $24,000 of raw materials as indirect materials and uses $64,000 of raw materials as direct materials. The journal entry to record the use of direct materials consists of a debit to Work in Process Inventory for $64,000 and a credit to Raw Materials Inventory for $64,000. True or False True False
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Muneer Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the year the company's Finished Goods inventory account was debited for Rs. 510,000 and credited for Rs. 480,000. The ending balance in the Finished Goods inventory account was Rs. 44,400. At the end of the year, manufacturing overhead was overapplied by Rs. 25,900. If the applied manufacturing overhead was Rs. 199,700. Calculate the actual manufacturing overhead cost for the year?