Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $5,900 for direct materials, $8,300 for direct labor, and $5,395 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $4,300 for direct materials and $4,200 for direct labor.

Required:

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

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

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