Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account shows the following Work

image text in transcribed
image text in transcribed
image text in transcribed
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account shows the following Work in Process Inventory Date Explanation Debit Credit Dec. 31 Direct materials cost 1,400,000 31 Direct labor cost 260,000 31 Overhead applied 448,000 31 To finished goods 2,016,000 Balance 1,400,000 1,650,000 2,108,000 92,000 1. Determine the predetermined overhead rate used based on direct materials cost). 2. Only one job remained in work in process inventory at December 31. Its direct materials cost is $27.000. How much direct labor cost and overhead cost are assigned to this job? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the predetermined overhead rate used (based on direct materials cost). Choose Numerator: Overhead Rate 1 Choose Denominator: I Overhead Rate Overhead rate = Required Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Only one job remained in work in process inventory at December 31. Its direct materials cost is $27,000. How much direct labor cost and overhead cost are assigned to this job? Total cost of job in process Direct labor cost ( Required 1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Study On The Auditing System Of Socialism With Chinese Characteristics

Authors: Jiayi Liu

1st Edition

111932470X, 978-1119324706

More Books

Students also viewed these Accounting questions

Question

8. Explain the relationship between communication and context.

Answered: 1 week ago