A Company Uses a Job Order Cost Accounting System and Applies

question 9

Essay

A company uses a job order cost accounting system and applies overhead on the basis of direct labor cost. A summary of the company's Goods in Process Inventory account for December appears below.
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 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:

Denominated

Refers to the currency in which a financial obligation or asset is expressed or required to be settled.

Australian Dollars

The currency of Australia, represented by the symbol AUD, and used as the legal tender in Australia and its territories.

United Kingdom Pounds

The official currency of the United Kingdom, known as the pound sterling, symbolized as GBP.

Exchange Rates

The value of one country's currency in terms of another currency.