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The Work in Process Inventory Account of a Manufacturing Company

question 170

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The Work in Process Inventory account of a manufacturing company has a $4,400 debit balance.The company applies overhead using direct labor cost.The cost sheet of the only job still in process shows direct material cost of $2,000 and direct labor cost of $800.Therefore,the company's predetermined overhead rate is:


Definitions:

FOB Shipping Point

A shipping term indicating that the buyer assumes ownership and responsibility for goods once they are shipped, and must pay for shipping costs.

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