Yancey Productions is a film studio that uses a job-order costing system. The companys direct materials consist of items such as costumes and props. Its direct labor includes each films actors, directors, and extras. The companys overhead costs include items such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its overhead cost to films based on direct labor-dollars.

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 $5,100 for direct materials, $9,400 for direct labor, and $5,828 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $4,000 for direct materials and $4,600 for direct labor. Required 1a. Should any overhead cost be applied to Job W at year-end? Yes O No 1b. How much overhead cost should be applied to Job W? Overhead cost 2. How will the costs included in Job W's job cost sheet be reported within Sigma Corporation's financial statements at the end of the year? O Raw Materials Work-in-Process Finished Goods