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A manufacturer uses job costing (normal costing approach). During the year, the company started two jobs: Job A; Job B. Job A was completed and
A manufacturer uses job costing (normal costing approach). During the year, the company started two jobs: Job A; Job B. Job A was completed and sold while Job B was not completed. For the year, MOH was under-allocated by $900. At year end, in closing entries, the company pro-rates the underallocated MOH to the relevant accounts based upon allocated MOH. The job cost records for the jobs appear below (figures are in dollars and are pre-closing): JobA Job B 1,000 2,000 DM 3,000 3,000 DL 2.000 1,000 MOH -- allocated Determine the pro-ration of the $900 underapplied MOH to cost of goods sold. Select one: O a. 0 O b. 300 O c. 450 O d. 600 O e. 900
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