10 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. Work in Process Inventory Credit 3 points Debit Beginning Direct materials used Direct labor used Overhead 0 2,000,000 290,000 680,000 2,882,000 88,000 Cost of goods manufactured eBook Ending Hint Print 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 $37,000. How much direct labor cost and applied overhead are assigned to this job? References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the predetermined overhead rate used (based on direct materials cost). Overhead Rate Denominator: Numerator: / = Overhead Rate / = Overhead rate / Complete this question by entering your answers in the tabs below. Required 1 Required 2 Only one job remains in work in process inventory at year-end. Its direct materials cost is $37,000. How much direct labor cost and applied overhead are assigned to this job? Total cost of job in process Direct labor cost Complete this question by entering your answers in the tabs below. Required 1 Required 2 The ending balance of its Work in Process Inventory account was $73,000, which included $22,000 of direct labor costs. Determine the direct materials costs in ending Work in Process Inventory. Ending balance of work in process inventory Direct materials cost in work in process inventory Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Enter the actual overhead costs incurred and the amount of overhead cost applied to movies during the year using the predetermined overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year. Factory Overhead Required 1 Required 2 Required 3 Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. View transaction list Journal entry worksheet Record entry to close underapplied /overapplied overhead. Note: Enter debits before credits. General Journal Debit Credit Date December 31 Record entry Clear entry View general journal 13 Sofa Gomez runs a mobile pet grooming service. She charges $25 direct labor per grooming hour. She applies overhead to jobs on the basis of grooming hours. She predicts 870 grooming hours for the year. Her estimated overhead costs for the year follow. 3 points Van depreciation Van maintenance $ 5,920 Van insurance expense 1,340 Indirect materials $ 1,070 Tool depreciation 670 Other overhead $ 420 1,020 1. Compute the predetermined overhead rate using estimated grooming hours. 2. Sofa has been asked to groom 3 large dogs. She expects this job to require a total of 15 direct labor grooming hours. Compute her total cost (direct labor plus applied overhead) for this job. 3. If Sofa targets a markup of 20% on the total cost for each job, what price should she quote for the job in part2? eBook Print 1. Predetermined overhead rate 2. Total job cost 3. Price quote References 14 Required information [The following information applies to the questions displayed below.) Marco Company shows the following costs for three jobs worked on in April. Part 1 of 4 Job 306 Job 307 Job 308 $ 25,000 25,000 12,500 $ 38,000 17,000 3 points 8,500 Balances on March 31 Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 131,000 102,000 ? Finished (sold) 215,000 155,000 ? Finished (unsold) $ 105,000 100,000 ? eBook In process Additional Information Print References a. Raw Materials Inventory has a March 31 balance of $90,000. b. Raw materials purchases in April are $550,000, and total factory payroll cost in April is $381,000. c. Actual overhead costs incurred in April are indirect materials, $56,000; indirect labor, $24,000; factory rent, $30,000; factory utilities, $24,000, and factory equipment depreciation, $54,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $675,000 cash in April. Required: 1. Determine the amount of overhead applied to each job in April. 306 307 308 April Total 0.50 0.50 0.50 0.50 Predetermined overhead rate Overhead applied