Exercise $2-12($Algo$)$ Applying Overhead Cost to a Job $[$LO$2-2]$

Sigma Corporation applies overhead cost to jobs based on direct labor cost. Job V$,$ which was started and completed during the current period, shows charges of $$6,700$ for direct materials, $$8,200$ for direct labor, and $$4,838$ for overhead on its job cost sheet. Job W$,$ which is still in process at year$-$end, shows charges of $$3,500$ for direct materials and $$4,900$ for direct labor.

Required:

$1$a$.$ Should any overhead cost be applied to Job W at year$-$end?

$1$b$.$ How much overhead cost should be applied to Job W$?$

$2.$ How will the costs included in Job W$\text{'}$s job cost sheet be reported within Sigma Corporation's financial statements at the end of the year?

Complete this question by entering your answers in the tabs below.

Required $1$a

Should any overhead cost be applied to Job W at year$-$end?

Should any overhead cost be applied to Job W at year$-$end?