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:

Negative Symptoms

Features associated with reductions or deficits in normal emotional and behavioral functions, commonly observed in disorders such as schizophrenia.

Schizophrenia

A grave psychological condition defined by alterations in thought processes, sensory perception, emotions, communication, self-awareness, and conduct.

Lithium

A chemical element used in batteries and as a treatment for bipolar disorder.

Bipolar Disorder

A condition of mental health defined by significant variations in emotional state, encompassing highs (mania or hypomania) and lows (depression).