The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $3,200 debit balance after all posting is completed.The cost sheet of the one job still in process shows direct material cost of $1,400 and direct labor cost of $800.Therefore,the amount of the applied overhead is:
A)$1,800.
B)$2,200.
C)$1,000.
D)$800.
E)$2,400.

Question

Quizplus · Accepted Answer

The Work in Process Inventory account balance is $3,200, which includes direct materials, direct labor, and applied overhead. Given direct materials are $1,400 and direct labor is $800, the remaining balance for overhead is $3,200 - $1,400 - $800 = $1,000.

The Work in Process Inventory Account of a Manufacturing Company