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Star Companys accountants estimate total overhead for each month will be $64,000. They will allocate overhead on the basis of direct labour cost. During the
Star Companys accountants estimate total overhead for each month will be $64,000. They will allocate overhead on the basis of direct labour cost. During the current month, 3 jobs were worked on: Job 745 was completed and sold, Job 746 was completed and Job 747 is still in process. Budgeted direct labour cost for the month was $160,000 and actual overhead was $65,800. Assuming overhead was $2,000 overapplied and that this amount is considered material, what is the final adjusted balance of finished goods inventory?
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Direct material Directlabour Job 745 Job 746 Job 747 $36,000 S56,000 72,000 $40,000 $56,000 $24,000Step by Step Solution
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