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Kilo Company Has a Job-Costing System A Determine the Predetermined Factory Overhead Rate for Kilo Company

Question 154

Essay

Kilo Company has a job-costing system.The following items appeared in the work-in-process account during January of the current year:
Kilo applies overhead to production on the basis of direct labour hours.Job XX,the only job in process on January 30,has been charged $10,600 materials cost and has 100 labour hours of direct labour time assigned to it.
Required:
 January 1 bal ance $20,000 Materials placed into production ? Direct labour (4,000 hours) $120,000 Factory overhead applied $96,000 Cost of goods manufactured $400,000 January 30 balance $16,000\begin{array}{lr}\text { January } 1 \text { bal ance } & \$ 20,000 \\\text { Materials placed into production } & ? \\\text { Direct labour (4,000 hours) } & \$ 120,000\\\text { Factory overhead applied } & \$ 96,000 \\\text { Cost of goods manufactured } & \$ 400,000 \\\text { January 30 balance } & \$ 16,000\end{array} A. Determine the predetermined factory overhead rate for Kilo Company.
B. Determine the amounts of materials, direct 1 abour, and factory overhead included in the January 30 work in process.
C. Determine the amount of materials placed into production during January.

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