A Company Uses a Job Order Cost Accounting System and Applies

question 49

Essay

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.

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Definitions:

Harlem Hellfighters

The Harlem Hellfighters were an African-American infantry unit in WWI that gained fame for their bravery and the significant role they played in the war, despite facing racism and discrimination.

Infantry Regiment

A military unit, typically consisting of soldiers who fight on foot, equipped for ground combat.

United States Infantry

The branch of the U.S. Army trained for ground combat operations, engaging in battle primarily on foot.

African American

Pertaining to Americans of African descent, with a history and culture shaped by the experience of slavery and the struggle for civil rights.