Geller Cabinets Is a Custom Cabinet Builder

question 88

Short Answer

Geller Cabinets is a custom cabinet builder. They recently completed a set of kitchen cabinets (Job #12478), as summarized below: Geller applies overhead to jobs at a rate of $15 per direct labor hour.
a. How much overhead would be applied to Job #12478?
b. What is the total cost of Job #12478?

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Definitions:

Work in Process Inventory

Goods that are in the manufacturing process but are not yet completed, representing a stage between raw materials and finished goods.

Job-Order Costing

An accounting method that tracks costs individually for each job, rather than by process or department, making it suitable for companies producing unique or custom products.

Process Costing

A method of costing used to ascertain the cost of a product at each process or stage of manufacture.

Weighted-Average Method

An inventory costing method that assigns a weighted average cost to each unit of inventory on hand.