FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Cost accumulation
Croftmark Co. began operations on May 1. Its Work in Process Inventory account on May 31 appeared as follows:
Work in Process Inventory
Direct material 166,320 Cost of completed jobs 77
Direct labor
115.200
Applied overhead 161,280
The company applies overhead on the basis of direct labor cost. Only one job was still in process on May 31. That job had $45,270 in direct material and
$21,720 in direct labor cost assigned to it.
a. What was the predetermined overhead application rate? Enter your answer as a whole percentage. 140
b. What was the balance in WIP Inventory at the end of May? $ 30,408
c. What was the total cost of jobs completed in May? $ 97,398 *
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Transcribed Image Text:Cost accumulation Croftmark Co. began operations on May 1. Its Work in Process Inventory account on May 31 appeared as follows: Work in Process Inventory Direct material 166,320 Cost of completed jobs 77 Direct labor 115.200 Applied overhead 161,280 The company applies overhead on the basis of direct labor cost. Only one job was still in process on May 31. That job had $45,270 in direct material and $21,720 in direct labor cost assigned to it. a. What was the predetermined overhead application rate? Enter your answer as a whole percentage. 140 b. What was the balance in WIP Inventory at the end of May? $ 30,408 c. What was the total cost of jobs completed in May? $ 97,398 *
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