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.

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 toit?

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Date Explanation Debit Credit Balance 2011 Dec. 31 31 31 31 Direct materials cost Direct labor cost Overhead costs To finished goods 1,500,000 240,000 450,000 1,500,000 1,740,000 2,190,000 90,000 2,100,000