Gilford,Inc.,uses a job-order costing system.Costs going through the company's work-in-process account during June are listed below.Manufacturing overhead is applied to production using a predetermined overhead rate based on direct labour cost.
$\begin{array}{|l|r|r|}
\hline \text { Work in process } & & \
\hline \text { Balance } & 0 & \$ 95,000 \text { transferred out } \
\hline \text { Direct materials } & \$ 20,000 \
\hline \text { Direct labour } & 30,000 \
\hline \text { Manufacturing overhead } & 60,000 \
\hline \text { Balance } & \$ 15,000 \
\hline
\end{array}$

Question

Gilford,Inc.,uses a job-order costing system.Costs going through the company's work-in-process account during June are listed below.Manufacturing overhead is applied to production using a predetermined overhead rate based on direct labour cost.
 $\begin{array}{|l|r|r|}
\hline \text { Work in process } & & \
\hline \text { Balance } & 0 & \$ 95,000 \text { transferred out } \
\hline \text { Direct materials } & \$ 20,000 \
\hline \text { Direct labour } & 30,000 \
\hline \text { Manufacturing overhead } & 60,000 \
\hline \text { Balance } & \$ 15,000 \
\hline
\end{array}$

Quizplus · Accepted Answer

The Answer of Gilford,Inc.,uses a job-order costing system.Costs going through the company's work-in-process account during June are listed below.Manufacturing overhead is applied to production using a predetermined overhead rate based on direct labour cost.
 $\begin{array}{|l|r|r|}
\hline \text { Work in process } & & \
\hline \text { Balance } & 0 & \$ 95,000 \text { transferred out } \
\hline \text { Direct materials } & \$ 20,000 \
\hline \text { Direct labour } & 30,000 \
\hline \text { Manufacturing overhead } & 60,000 \
\hline \text { Balance } & \$ 15,000 \
\hline
\end{array}$