Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $6,800 for direct materials, $9,500 for direct labor, and $5,890 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $3,500 for direct materials and $4,400 for direct labor.

Required:

1a. Should any overhead cost be applied to Job W at year-end?

multiple choice 1

Yes

No

1b. How much overhead cost should be applied to Job W?

2. How will the costs included in Job Ws job cost sheet be reported within Sigma Corporations financial statements at the end of the year?

multiple choice 2

Raw Materials

Work-in-Process

Finished Goods