Discus Corp. applies overhead to jobs on the basis of direct labor costs. Job Z which was
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Question:
Discus Corp. applies overhead to jobs on the basis of direct labor costs. Job Z which was started and completed during the current period shows charges of $10,000 for direct materials, $16,000 for direct labor, and $12,000 for overhead on its job cost sheet. Job Y which still was in process at year end shows charges of $5,000 for direct materials, and $8,000 for direct labor.
Required:
- (5 points) Should any overhead cost be applied to Job Y at year end? If so, how much? Explain briefly.
- (5 points) How will the costs included in Job Y's cost sheet be reported within Beta Corps. financial statements at the year end?
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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