Your company uses a job order costing. Manufacturing overhead is charged to individual jobs through the use of a predetermined overhead rate based on direct labor costs. The following information appears in the company's Work in Process Inventory account for the month of April: Debits to account: Balance, April 1 Direct materials Direct labor Manufacturing overhead (applied to jobs as 120% of direct labor cost) Total debits to account Credits to account: Transferred to finished goods inventory Balance, April 30 $9,600 14,000 6,000 7,200 $36,800 $27,600 $9,200 Assuming that direct labor charged to the jobs still in process on April 30 amounts to $1,500, compute the amount of manufacturing overhead and the amount of direct materials that have been charged to the jobs that are still in process as of April 30. Explain your answer.

Your company uses a job order costing. Manufacturing overhead is charged to individual jobs through the use of a predetermined overhead rate based on direct labor costs. The following information appears in the company's Work in Process Inventory account for the month of April: Debits to account: Balance, April 1 Direct materials Direct labor Manufacturing overhead (applied to jobs as 120% of direct labor cost) Total debits to account Credits to account: Transferred to finished goods inventory Balance, April 30 $9,600 14,000 6,000 7,200 $36,800 $27,600 $9,200 Assuming that direct labor charged to the jobs still in process on April 30 amounts to $1,500, compute the amount of manufacturing overhead and the amount of direct materials that have been charged to the jobs that are still in process as of April 30. Explain your answer.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 9P: Channel Products Inc. uses the job order cost system of accounting. The following is a list of the...

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