Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year - end,
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Question:
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At yearend, the Work in Process Inventory account shows the following.
Work in Process Inventory
Date Explanation Debit Credit Balance
Dec. Direct materials cost
Direct labor cost
Overhead applied
To finished goods
Determine the predetermined overhead rate used based on direct materials cost
Only one job remained in work in process inventory at December Its direct materials cost is $
How much direct labor cost and overhead cost are assigned to this job?
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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