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Question
A company uses a job order cost accounting system and applies overhead on the basis of direct labor cost. At the end of a recent period, the company's Goods in Process Inventory account appeared as follows:
| Goods in Process | |||||||
| Date | Explanation | PR | Debit | Credit | Balance | ||
| Mar. | 17 | Job No. 5 completed | G-8 | 90,900 | (17,100 | ) | |
| Apr. | 13 | Job No. 6 completed | G-10 | 131,400 | (148,500 | ) | |
| July | 20 | Job No. 7 completed | G-12 | 73,800 | (222,300 | ) | |
| Oct. | 11 | Job No. 8 completed | G-15 | 168,300 | (390,600 | ) | |
| Dec. | 31 | Direct Materials | G-20 | 235,800 | (154,800 | ) | |
| 31 | Direct Labor | G-20 | 117,000 | (37,800 | ) | ||
| 31 | Factory Overhead | G-20 | 187,200 | 149,400 | |||
Write in the blanks for the following:
A. The total cost of the direct materials, direct labor, and factory overhead applied in the December 31 goods in process inventory is $_______________________.
B The company's overhead application rate is __________________%
C Job No. 6 had $26,550 of direct labor cost. Therefore, the job must have had $________ of direct materials cost.
D. Job No. 8 had $73,998 of direct materials cost. Therefore, the job must have had $________ of factory overhead cost.
Answer
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