Question
Overhead was budgeted at $15 per direct labor hour. Jobs A & C were completed during the period. C was sold with a 60% markup.
Overhead was budgeted at $15 per direct labor hour. Jobs A & C were completed during the period. C was sold with a 60% markup. Actual overhead was $450,000. What is the inventory and COGS account balances? What is the over or under applied overhead? What is the adjusted and unadjusted gross margin?
Can someone help me understand how to solve this job costing question in detail?
Job A Job B Job C Job D Direct Labor Hours 5,000 10,000 6,000 8,000 Beginning Balance $45,000 $28,000 - - Direct Labor $68,000 $93,000 $88,000 $96,000 Direct Material $75,000 $123,000 $96,000 $25,000 Overhead
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