Question
Jensen Fences uses job order costing. Manufacturing overhead is charged to individual jobs through the use of a predetermined overhead rate based on direct labor
Jensen Fences uses job order costing. Manufacturing overhead is charged to individual jobs through the use of a predetermined overhead rate based on direct labor costs. The following information appears in the company's Work in Process Inventory account for the month of June:
Debits to account: | ||
Balance, June 1 | $ | 5,000 |
Direct materials | 19,000 | |
Direct labor | 12,100 | |
Manufacturing overhead (applied to jobs as 125% of direct labor cost) | 15,125 | |
Total debits to account | $ | 51,225 |
Credits to account: | ||
Transferred to Finished Goods Inventory account | 44,000 | |
Balance, June 30 | $ | 7,225 |
Instructions
a. | Assuming that the direct labor charged to the jobs still in process at June 30 amounts to $1,700, compute the amount of manufacturing overhead and the amount of direct materials that have been charged to these jobs as of June 30.
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