Personal Financing Essay Dissertation Research Help
Paper , Order, or Assignment Requirements
| Jensen Fences uses job order costing. Manufacturing overhead is charged to individual jobs through the use of a predetermined overhead rate based on direct labor costs. The following information appears in the companys Work in Process Inventory account for the month of June: |
| Debits to account: | ||
| Balance, June 1 | $ | 5,000 |
| Direct materials | 19,000 | |
| Direct labor | 12,100 | |
| Manufacturing overhead (applied to jobs as 125% of direct labor cost) | 15,125 | |
| Total debits to account | $ | 51,225 |
| Credits to account: | ||
| Transferred to Finished Goods Inventory account | 44,000 | |
| Balance, June 30 | $ | 7,225 |
Instructions
| a. | Assuming that the direct labor charged to the jobs still in process at June 30 amounts to $1,600, compute the amount of manufacturing overhead and the amount of direct materials that have been charged to these jobs as of June 30. |
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