Chapter 19, Problem 12E

To determine

Work in Process:

Under job order costing system, when the raw materials are being utilized, the work in process inventory increase and the raw materials inventory decreases because the raw materials are being transfer. Direct labor cost and overhead cost applied are also transferred to work in process inventory account. When a particular job is completed, the cost of manufacturing the product is transferred to the finished goods inventory account which is available for sale.

To determine:

1. Computation of Predetermined Overhead Rate.

2. Compute the direct labor cost and overhead cost assigned to the job if only one job remained in work in process inventory at December 31, 2017 with direct materials cost of $30,000.