Question
24. A company uses a job order costing system and applies overhead on the basis of direct labor cost. A summary of the company's Work
24. A company uses a job order costing system and applies overhead on the basis of direct labor cost. A summary of the company's Work in Process Inventory account for December appears below.
Work in Process | |||||
Date | Explanation | PR | Debit | Credit | Balance |
Dec. 1 |
|
|
|
| 73,800 |
Dec. | Direct Materials | G-20 | 235,800 |
| 309,600 |
Dec. | Direct Labor | G-20 | 117,000 |
| 426,600 |
Dec. | Factory Overhead | G-20 | 187,200 |
| 613,800 |
Dec. | Job No. 5 completed | G-8 |
| 90,900 | 522,900 |
Dec. | Job No. 6 completed | G-10 |
| 131,400 | 391,500 |
Dec. | Job No. 7 completed | G-12 |
| 73,800 | 317,700 |
Dec. 31 | Job No. 8 completed | G-15 |
| 168,300 | 149,400 |
Fill in the blanks for the following: (1) The total cost of the direct materials, direct labor, and factory overhead applied in the December 31 Work in Process inventory is _______________________. (2) The company's overhead application rate is __________________%. (3) Job No. 6 had $26,550 of direct labor cost. Therefore, the job must have had ________ of direct materials cost. (4) Job No. 8 had $73,998 of direct materials cost. Therefore, the job must have had ________ of factory overhead cost.
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