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Lopez Company uses a job order cost accounting system that charges overhead to jobs on the basis of direct material cost. At year-end, the Goods
Lopez Company uses a job order cost accounting system that charges overhead to jobs on the basis of direct material cost. At year-end, the Goods in Process Inventory account shows the following. |
Date | Explanation | Debit | Credit | Balance |
2011 | ||||
Dec. 31 | Direct materials cost | 1,500,000 | 1,500,000 | |
31 | Direct labor cost | 240,000 | 1,740,000 | |
31 | Overhead costs | 450,000 | 2,190,000 | |
31 | To finished goods | 2,100,000 | 90,000 | |
1. | Determine the overhead rate used (based on direct material cost). (Omit the "%" sign in your response.) |
Overhead rate | % |
2. | Only one job remained in the goods in process inventory at December 31, 2011. Its direct materials cost is $30,000. How much direct labor cost and overhead cost are assigned to it? (Omit the "$" sign in your response.) |
Direct labor cost | $ ? (need answer, NOT 4,800) |
Overhead cost | $ 9,000 |
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