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can someone please help solve this and show work? thank you so much 17. Company operates a job-order costing system and applies overhead cost to
can someone please help solve this and show work? thank you so much
17. Company operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. Its predetermined overhead rate was based on a cost formula that estimated $135,000 of manufacturing overhead and an estimated allocation base of $90,000 in direct labor cost. The company has provided the following data: Beginning Ending Raw Materials Inventory (all $29,000 $11,000 direct) Work in Process Inventory 45,000 36,000 Finished Goods Inventory 71,000 61,000 The following actual costs were incurred during the year: Purchase of raw materials (all direct) $130,000 Direct labor cost $100,000 Manufacturing overhead cost $110,000 Suppose the company closes out any under- or over-applied overhead cost to Cost of Goods Sold. How much was the company's adjusted Cost of Goods Sold? a. $377,000 b. $357,000 c. $337,000 d. $363,000 e. None of the above 18. The Work in Process inventory account of a manufacturing company shows a balance of $2,600 at the end of an accounting period. The job cost sheets of the two uncompleted jobs show charges of $400 and $200 for direct materials, and charges of $300 and $500 for direct labor. From this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct labor cost ($) of: 80% b. 125% c. 100% d. 150% 200% a. eStep by Step Solution
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