Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work

Question:

Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account shows the following.

1. Determine the predetermined overhead rate used (based on direct materials cost).

2. Only one job remains in work in process inventory at year-end. Its direct materials cost is $30,000.

How much direct labor cost and applied overhead are assigned to this job?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamental Accounting Principles

ISBN: 9781260247985

25th Edition

Authors: John J Wild, Ken Shaw

See More Books

Question Posted: Oct 27, 2021 02:50 AM

See More Questions

You are a graduate scientist working in an interdisciplinary research team within a not-for-profit research and development organisation. Your team leader has requested you prepare a review of the...
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 $5,000 for direct materials,...
Duggan Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $308,800 for the year, and machine usage is estimated at 125,000 hours....
The shear shown is used to trim electronic-circuit-board laminates. Neglecting the thickness of the shearing blade and knowing that a vertical 3-kN shearing force at E is required to cut the...
A heavily insulated cylinder/piston contains ammonia at 1200 kPa, 60C. The piston is moved, expanding the ammonia in a reversible process until the temperature is 20C. During the process 600 kJ of...
The DeVille Company reported pretax accounting income on its income statement as follows: Included in the income of 2011 was an installment sale of property in the amount of $50,000. However, for tax...
Predicting elements in aluminum alloys. Aluminum scraps that are recycled into alloys are classified into three categories: soft-drink cans, pots and pans, and automobile crank chambers. A study of...
Walkin Inc. is considering the write-down of its long-term plant because of a lack of profitability. Explain to the management of Walkin how to determine whether a write-down is permitted.
Molo Oil Company produces gasoline, home heating oil, and jet fuel from crude oil in a joint processing operation. Joint processing costs up to the split-off point total $345,000 per month. For...
Complete Case 7.3 Trans LAN Project in Larson and Gray by responding to questions 1, 2, and 3. Combine items 1 and 2 into a single Risk Assessment Form (see Figure 7.6 in Larson and Gray) and use...
Rize Co. reports the following (partial) T-account activity at the end of its first year of operations. 1. Compute the under- or overapplied overhead for the year. 2. Prepare the journal entry to...
Prepare journal entries to record transactions a through h. a. Raw materials purchased on credit, $90,000. b. Direct materials used, $36,500. Indirect materials used, $19,200. c. Direct labor used,...
Great Forks Hospital reported net income for 2007 of $2.4 million on total revenues of $30 million. Depreciation expense totaled $1 million. a. What were total expenses for 2007? b. What were total...
Bybee Printing makes custom posters and is currently considering making large-scale outdoor banners as well. Which one of the following is the best example of an incremental operating cash flow...
https://filmsfortheearth.org/en/film/humans-destroyers-of-earth/ This documentary will give you more insight into the speed at which globalization has taken place during the dawn of...
1. Write and explain (through comment or description after the program) a complete C program to perform the following activities: a. Take Student ID as user input from keyboard (2) b. Determine the...
Assume that I have a Company uses a job costing system with machine hours as the allocation base for overhead. The company uses normal costing to develop the overhead allocation rate. The following...
(CASE STUDY )Company Information: ABC Company is a large automotive dealer company operating in the field of automobile retailing that is owned by a big Holding Group Company XYZ. ABC Company buys...
Which of the following statements is true? (i) A cheque is a type of bill of exchange. (ii) A bill of exchange is a type of cheque. Explain your answer.
Would you use the adjacency matrix structure or the adjacency list structure in each of the following cases? Justify your choice. a. The graph has 10,000 vertices and 20,000 edges, and it is...
Johnny Cupcakes, launched by entrepreneur John Earle, produces t-shirts in unique styles and limited quantities. Selling prices typically range from $40 per shirt to $70 per shirt. Required 1....
Business Solutions sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unit:chair). The selling prices are $1,250 per desk unit and $500 per chair. The variable costs are...
Business Solutions sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unit:chair). The selling prices are $1,250 per desk unit and $500 per chair. The variable costs are...
ACC 2 0 2 Milestone One: Operational Costs Data Appendix You plan to open a small business for manufacturing pet collars, leashes, and harnesses. You have found a workshop space you can use for...
Explain the following: Understand the PPE acquisition (or investing) cycle and related significant transactions and source documents Understand the relevant assertions/objectives about PPE balances...
Problem 3 Progress Company acquired 6 0 % of Stall Corporation on 1 2 0 2 0 . Fair values of Stall's assets and liabilities approximated book values on that date. Progress uses the initial value...

Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work

Question:

Work in Process Inventory Beginning Direct materials used 1,500,000 300,000 600,000 Direct labor used Overhead applied 2,350,000 Cost of goods manufactured Ending 50,000

Step by Step Answer:

Overhead means all indirect costs related to production of goods these costs can not be applied di...View the full answer

Fundamental Accounting Principles

Students also viewed these Business questions