Personal Financing Essay Dissertation Research Help

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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 company’s 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


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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