Question: Winston Company applies overhead cost to jobs on the basis

Winston Company applies overhead cost to jobs on the basis of direct labor cost. Job X, which was started and completed during the current period, shows charges of $18,000 for direct materials, $10,000 for direct labor, and $15,000 for overhead on its job cost sheet. Job Q, which is still in process at year-end, shows charges of $20,000 for direct materials, and $8,000 for direct labor.

Required:
Should any overhead cost be added to Job Q at year-end? If so, how much! Explain.



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  • CreatedSeptember 27, 2013
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