Wilson 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 show 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, 2009. Its direct materials cost is $40,000. How much direct labor cost and overhead cost are assigned toit?

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Date Explanation Debit Credit Balance 2009 Dec. 31Direct materials cost 31 Direct labor cost 31 Overhead costs 31 To finished goods 1,200,000 270,000 480,000 1,200,000 1,470,000 1,950,000 90,000 1,860,000