Lopez Company uses a job order cost accounting system that charges overhead to jobs on the basis of…


Question Description:

29.99

Lopez Company uses a job order cost accounting system that charges overhead to jobs on the basis of… 1 answer below » Lopez Company uses a job order cost accounting system that charges overhead to jobs on the basis of direct material cost. At year-end, the Goods in Process Inventory account shows the following. View complete question » Date Explanation Debit Credit Balance 2011 Dec. 31 Direct materials cost 1,500,000 1,500,000 31 Direct labor cost 240,000 1,740,000 31 Overhead costs 450,000 2,190,000 31 To finished goods 2,100,000 90,000 & Lopez Company uses a job order cost accounting system that charges overhead to jobs on the basis of direct material cost. At year-end, the Goods in Process Inventory account shows the following. Date Explanation Debit Credit Balance 2011 Dec. 31 Direct materials cost 1,500,000 1,500,000 31 Direct labor cost 240,000 1,740,000 31 Overhead costs 450,000 2,190,000 31 To finished goods 2,100,000 90,000 1. Determine the overhead rate used (based on direct material cost). 2. Only one job remained in the goods in process inventory at December 31, 2011. Its direct materials cost is $30,000. How much direct labor cost and overhead cost are assigned to it? View less » Jul 24 2014 07:49 AM

Answer

29.99