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:

Write in the blanks for the following:
(1) The total cost of the direct materials, direct labor, and factory overhead applied in the December 31 goods in process inventory is $_______________________.
(2) The company's overhead application rate is __________________%
(3) Job No. 6 had $26,550 of direct labor cost. Therefore, the job must have had $________ of direct materials cost.
(4) Job No. 8 had $73,998 of direct materials cost. Therefore, the job must have had $________ of factory overhead cost.

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:

Write in the blanks for the following:
(1) The total cost of the direct materials, direct labor, and factory overhead applied in the December 31 goods in process inventory is $_______________________.
(2) The company's overhead application rate is __________________%
(3) Job No. 6 had $26,550 of direct labor cost. Therefore, the job must have had $________ of direct materials cost.
(4) Job No. 8 had $73,998 of direct materials cost. Therefore, the job must have had $________ of factory overhead cost.

Quizplus · Accepted Answer

The Answer of 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:

Write in the blanks for the following:
(1) The total cost of the direct materials, direct labor, and factory overhead applied in the December 31 goods in process inventory is $_______________________.
(2) The company's overhead application rate is __________________%
(3) Job No. 6 had $26,550 of direct labor cost. Therefore, the job must have had $________ of direct materials cost.
(4) Job No. 8 had $73,998 of direct materials cost. Therefore, the job must have had $________ of factory overhead cost.

A Company Uses a Job Order Cost Accounting System and Applies