A Company Uses a Job Order Costing System and Applies

question 49

Essay

A company uses a job order costing system and applies overhead on the basis of direct labor cost. A summary of the company's Work in Process Inventory account for December appears below.
$$\begin{array}{l}\text { Work in Process }\\\begin{array} { | l | l | l | r | r | r | } \hline \text { Date } & \text { Explanation } & \text { PR } & \text { Debit } & \text { Credit } & \text { Balance } \\\hline \text { Dec. 1 } & & & & & 73,800 \\\hline \text { Dec. } & \text { Direct Materials } & \text { G-20 } & 235,800 & & 309,600 \\\hline \text { Dec. } & \text { Direct Labor } & \text { G-20 } & 117,00 \mathrm { C } & & 426,600 \\\hline \text { Dec. } & \text { Factory Overhead } & \text { G-20 } & 187,20 \mathrm { C } & & 613,800 \\\hline \text { Dec. } & \text { Tob No. 5 completed } & \text { G-8 } & & 90,900 & 522,900 \\\hline \text { Dec. } & \text { Tob No. 6 completed } & \text { G-10 } & & 131,40 \mathrm { C } & 391,50 \mathrm { O } \\\hline\text { Dec. } & \text { Tob No. 7 completed } & \text { G-12 } & & 73,80 \mathrm { O } & 317,700 \\\hline \text { Dec.31 } & \text { Tob No. 8 completed } & \text { G-15 } & & 168,30 \mathrm { C } & 149,40 \mathrm { C } \\\hline & & & & & \\\hline\end{array}\end{array}$$ Fill in the blanks for the following:
(1) The total cost of the direct materials, direct labor, and factory overhead applied in the December 31 Work 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.

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Definitions:

Discharged

The completion, termination, or fulfillment of an obligation, debt, or contract.

Professional Licensing Statutes

Laws and regulations that establish the requirements and standards for obtaining and maintaining a license to practice certain professions.

Public's Health

The science and practice of protecting and improving the health of a community, as by preventive medicine, health education, control of communicable diseases, application of sanitary measures, and monitoring of environmental hazards.

Age of Majority

The legally recognized age at which an individual is considered an adult and capable of assuming legal rights and responsibilities.